The following failures on new 3.5.0 seems related as they all end with the same message about vcvarsall.bat (slightly different from 3.4 failures).

======================================================================
ERROR: test_get_outputs (distutils.tests.test_build_ext.BuildExtTestCase)
----------------------------------------------------------------------

======================================================================
ERROR: test_optional_extension (distutils.tests.test_build_ext.BuildExtTestCase)
----------------------------------------------------------------------

======================================================================
ERROR: test_get_outputs (distutils.tests.test_build_ext.ParallelBuildExtTestCase)
----------------------------------------------------------------------

======================================================================
ERROR: test_optional_extension (distutils.tests.test_build_ext.ParallelBuildExtTestCase)
----------------------------------------------------------------------

======================================================================
ERROR: test_compiler_options (distutils.tests.test_msvccompiler.msvccompilerTestCase)
----------------------------------------------------------------------

======================================================================
ERROR: test_vcruntime_copy (distutils.tests.test_msvccompiler.msvccompilerTestCase)
----------------------------------------------------------------------

======================================================================
ERROR: test_vcruntime_skip_copy (distutils.tests.test_msvccompiler.msvccompilerTestCase)
----------------------------------------------------------------------

======================================================================
FAIL: test_customize_compiler_before_get_config_vars (distutils.tests.test_sysconfig.SysconfigTestCase)
----------------------------------------------------------------------
Traceback (most recent call last):
  File "C:\Programs\Python 3.5\lib\distutils\tests\test_sysconfig.py", line 197, in test_customize_compiler_before_get_c
onfig_vars
    self.assertEqual(0, p.returncode, "Subprocess failed: " + outs)
AssertionError: 0 != 1 : Subprocess failed: Traceback (most recent call last):
  File "@test_5504_tmp", line 5, in <module>
    rc = config.try_compile('int x;')
  File "C:\Programs\Python 3.5\lib\distutils\command\config.py", line 227, in try_compile
    self._compile(body, headers, include_dirs, lang)
  File "C:\Programs\Python 3.5\lib\distutils\command\config.py", line 133, in _compile
    self.compiler.compile([src], include_dirs=include_dirs)
  File "C:\Programs\Python 3.5\lib\distutils\_msvccompiler.py", line 315, in compile
    self.initialize()
  File "C:\Programs\Python 3.5\lib\distutils\_msvccompiler.py", line 208, in initialize
    vc_env = _get_vc_env(plat_spec)
  File "C:\Programs\Python 3.5\lib\distutils\_msvccompiler.py", line 83, in _get_vc_env
    raise DistutilsPlatformError("Unable to find vcvarsall.bat")
distutils.errors.DistutilsPlatformError: Unable to find vcvarsall.bat


----------------------------------------------------------------------
Ran 234 tests in 1.108s

FAILED (failures=1, errors=7, skipped=28)
Warning -- threading._dangling was modified by test_distutils
Warning -- files was modified by test_distutils