diff --git a/azure-pipelines.yml b/azure-pipelines.yml
index 95cb2ad..6fb919d 100644
--- a/azure-pipelines.yml
+++ b/azure-pipelines.yml
@@ -37,7 +37,11 @@ stages:
     - script: |
         python -m pip install --upgrade pip
         pip install -r requirements.txt
-        pip install wheel
+        # Ensure setuptools >= 69.3.0 so the sdist filename follows the
+        # PEP 625 normalized form (azure_functions_durable-*.tar.gz).
+        # Older setuptools emits the legacy hyphenated name, which ESRP
+        # rejects.
+        pip install "setuptools>=69.3.0" wheel
         # Pin an older azure-functions (< 1.26.0) that predates the
         # centralized df_dumps / df_loads serializers so this job exercises
         # the legacy serialization fallback in df_serialization. The
diff --git a/eng/templates/build.yml b/eng/templates/build.yml
index 22ebd74..49ca57c 100644
--- a/eng/templates/build.yml
+++ b/eng/templates/build.yml
@@ -16,7 +16,11 @@ jobs:
         - script: |
             python -m pip install --upgrade pip
             pip install -r requirements.txt
-            pip install wheel
+            # Ensure setuptools >= 69.3.0 so the sdist filename follows the
+            # PEP 625 normalized form (azure_functions_durable-*.tar.gz).
+            # Older setuptools emits the legacy hyphenated name, which ESRP
+            # rejects.
+            pip install "setuptools>=69.3.0" wheel
             # Pin an older azure-functions (< 1.26.0) that predates the
             # centralized df_dumps / df_loads serializers so this job
             # exercises the legacy serialization fallback in df_serialization.