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I just saw issue11637 [Add cwd to sys.path for hooks] and was reminded that this would also be useful (and in fact necessary if hook code is in a package that's under some root other than cwd).
On a related matter, the current use of Distribution.package_dir is confusing. Sometimes it's assumed to be a string, though in other parts of the code it's assumed to be a dict to support multiple package dirs--something which I thought was going away.