This has been in the TortoiseHg builds for several cycles now on Windows, and
even longer on macOS. It allows an extension to be configured with ext =
syntax, instead of requiring the full path to be specified. It's confusing for
a user to be hit with messages about not being able to load extensions, based
solely on which hg.exe is being run.
This only applies to py2exe binaries, since wrapper.exe already sees into the
user site area. There are no frozen binaries on other platforms (that I'm aware
of), and an equivalent change will need to be made to dispatch.py in order to
work with PyOxidizer, since it bypasses this module completely. (It also has
the ability to use the site module, so it will look completely different.)