Use the built in venv module instead of virtualenv for simplicity, and
upgrade to a modern Mercurial that supports py3.
One issue here is that venv doesn't copy python3{,Y}.dll into the Scripts
subdirectory, so running the hg.exe that gets installed immediately fails on a
clean system because Python isn't in PATH. There is code in python.exe to
detect when it is in a venv and add the original python install to the DLL
lookup path, which we don't do in hg.exe yet. The simple workaround for now is
to run the hg script with python.exe. Typically PYTHONLEGACYWINDOWSSTDIO
must be set in the environment on Windows, but the clone process works without
it.