I encountered this issue when using pip. Whenever I try to install a package, it shows a Fatal error, saying that the module encodings was not found, followed by a reboot.
The blue screen shows this message:
KMode exception not handled.
What failed: dipsp.sys.

I have tried uninstalling and reinstalling python 3.7.3. I have also tried moving back to Python 3.5, because I am certain that this issue didn't exist when I was using that. However I encountered the same issues again.

I can otherwise use the interpreter, and run all my code just fine. Previously installed modules like pandas and numpy also work like usual. The only difficulty I encountered is when attempting to install new packages using pip.

After looking around, I found something about setting PYTHONPATH and PYTHONHOME environment variables, but it didn't work either.
I tried installing python in different locations, but that didn't help either.

I am now stuck because I can't install any modules, (and I lost previously installed modules during clean reinstall).
How do I solve this? And while a solution is found, is there a way to install modules without pip?

There may be a broken pip.exe in your computer.

Try `python -VV` to check what python are you using.
After that, try `python -m pip`, instead of `pip`.

Thank Inada Naoki, I can confirm that python -m pip works as normal and I can resume my work.
However pip is still causing the errors, and not just pip, it was also the same for pip3 and pip3.7 as well as easy_install. I guess I will wait for future updates to solve this.
(Also, just one question: how could python -m pip work but not pip? What are the differences in them?

You can use `where pip` to find which pip is used.
And you can check `PATH` environment variable and remove unused PATHs.

> Also, just one question: how could python -m pip work but not pip? What are the differences in them?

To answer this, "pip" on its own is essentially like writing the full path to a specific python.exe and passing "-m pip". If that Python install has been removed or (more likely in this case) is broken, then you'll get the error you're seeing.

Fixing your PATH as suggested should do it.

Is this issue resolved?

Oh, it's closed, sorry for the noise.