@prashant151 - Unlike legacy (pre-UC) clusters, you cannot directly run a Databricks notebook (like setup.py) from a cluster init script, because init scripts only support shell commands — not %run or notebook execution.

You will need to refactor your setup logic into a Python module and install it via the init script.

I would do below instead

• Refactor steup.py into python package (.whl)
• Store your .whl to UC Volume
• Install via Cluster Init Script (Attach this init script to your cluster under Advanced Options → Init Scripts)
• Now you can import it in your notebook instead of %run