diff --git a/HISTORY.rst b/HISTORY.rst
index 6edd147f..5b6b88d8 100644
--- a/HISTORY.rst
+++ b/HISTORY.rst
@@ -2,6 +2,14 @@
 
 Release History
 ===============
+0.2.12
+++++++
+* Editable installs (``azdev setup``, ``azdev extension add``, code generation) now pass ``--no-build-isolation`` so wheels build against the environment's pinned ``setuptools`` instead of an isolated PEP 517 build environment. This fixes editable-install failures introduced by the ``setuptools`` pinning.
+
+0.2.11b3
+++++++++
+* ``azdev extension update-index``/``publish``: Fix ``ValueError: Not a known wheel archive format`` when reading wheel metadata. The wheel is now downloaded with its ``.whl`` filename so ``pkginfo.Wheel`` can read it, and ``read_pkginfo`` falls back to a temporary ``.whl`` copy for any non-``.whl`` path. (#7740)
+
 0.2.11b2
 ++++++++
 * Quote paths when running editable installs (``pip install -e <path>``) and the pytest runner so that paths containing spaces (e.g. OneDrive folders) no longer break ``azdev extension add``, ``azdev setup``, code generation, and ``azdev test``. (#550, #415)
diff --git a/azdev/__init__.py b/azdev/__init__.py
index 4e073268..f637ad2d 100644
--- a/azdev/__init__.py
+++ b/azdev/__init__.py
@@ -4,4 +4,4 @@
 # license information.
 # -----------------------------------------------------------------------------
 
-__VERSION__ = '0.2.11b2'
+__VERSION__ = '0.2.12'
diff --git a/azdev/operations/code_gen.py b/azdev/operations/code_gen.py
index 9e54627d..0cebe3dc 100644
--- a/azdev/operations/code_gen.py
+++ b/azdev/operations/code_gen.py
@@ -18,7 +18,7 @@
 
 logger = get_logger(__name__)
 
-_PIP_EDITABLE_OPTS = "--config-settings editable_mode=compat"
+_PIP_EDITABLE_OPTS = "--config-settings editable_mode=compat --no-build-isolation"
 
 _MODULE_ROOT_PATH = os.path.join('src', 'azure-cli', 'azure', 'cli', 'command_modules')
 
diff --git a/azdev/operations/extensions/__init__.py b/azdev/operations/extensions/__init__.py
index c8699ec8..0b4ac495 100644
--- a/azdev/operations/extensions/__init__.py
+++ b/azdev/operations/extensions/__init__.py
@@ -21,7 +21,7 @@
 
 logger = get_logger(__name__)
 
-_PIP_EDITABLE_OPTS = "--config-settings editable_mode=compat"
+_PIP_EDITABLE_OPTS = "--config-settings editable_mode=compat --no-build-isolation"
 
 # These are the index files cleared by CommandIndex().invalidate() in azure-cli-core.
 # Refer: azure-cli-core/azure/cli/core/__init__.py
@@ -288,7 +288,7 @@ def update_extension_index(extensions):
         ext_dir = tempfile.mkdtemp(dir=extensions_dir)
         whl_cache_dir = tempfile.mkdtemp()
         whl_cache = {}
-        ext_file = get_whl_from_url(ext_path, extension_name, whl_cache_dir, whl_cache)
+        ext_file = get_whl_from_url(ext_path, ext_path.split("/")[-1], whl_cache_dir, whl_cache)
 
         with open(index_path, 'r') as infile:
             curr_index = json.loads(infile.read())
diff --git a/azdev/operations/extensions/metadata.py b/azdev/operations/extensions/metadata.py
index bfc9717f..d72914a5 100644
--- a/azdev/operations/extensions/metadata.py
+++ b/azdev/operations/extensions/metadata.py
@@ -66,7 +66,15 @@ def read_pkginfo(wheel_path: Path) -> Dict[str, Any]:
     """Read spec-defined wheel metadata via pkginfo.Wheel."""
     import pkginfo
 
-    whl = pkginfo.Wheel(str(wheel_path))
+    wheel_path = Path(str(wheel_path))
+    target = wheel_path
+    if wheel_path.suffix != ".whl":
+        import shutil
+        import tempfile
+        target = Path(tempfile.mkdtemp()) / (wheel_path.name + ".whl")
+        shutil.copyfile(wheel_path, target)
+
+    whl = pkginfo.Wheel(str(target))
     return {
         "name": whl.name,
         "version": whl.version,
diff --git a/azdev/operations/setup.py b/azdev/operations/setup.py
index 5c5e4547..4a2254f6 100644
--- a/azdev/operations/setup.py
+++ b/azdev/operations/setup.py
@@ -21,7 +21,7 @@
 
 logger = get_logger(__name__)
 
-_PIP_EDITABLE_OPTS = "--config-settings editable_mode=compat"
+_PIP_EDITABLE_OPTS = "--config-settings editable_mode=compat --no-build-isolation"
 
 
 def _check_path(path, file_name):