The problem, I believe, is that stable diffusion presently only supports Python 3.10, but Arch ships 3.12, and some of the dependencies aren’t compatible with the newer version. Here’s what I did to get it working on Arch + AMD 7800XT GPU.

1. Install python310 package from AUR
2. Manually create the virtualenv for stable diffusion with python3.10 -m venv venv (in stable diffusion root directory)

This should be enough for the dependencies to install correctly. To get GPU acceleration to work, I also had to add this environment variable: HSA_OVERRIDE_GFX_VERSION=11.0.0 (Not sure if this is needed or if the value is same for 7900 XTX)

This was my experience as well as a developer trying to package an application as an appimage. Creating an appimage that works on your machine is easy. Creating one that actually works on other distros can be damn near impossible unless everything is statically linked and self contained in the first place. In contrast, flatpak’s developer experience is much easier and if it runs, you can be pretty sure it runs elsewhere as well.