Error when creating a Google App Engine project with Django framework

I am getting an error when I try to create a new Google App Engine project using Django framework using Python 3.7 interpreter (see picture below). This does not happen when I create a project using the Python 2.7 interpreter.

I've installed Django from the command prompt terminal and Google Cloud SDK is functioning. Also app-engine-python and app-engine-python-extras have been installed via the SDK.

The tutorials on GCP tell me to have both Python 2.7 and Python 3.7 installed and if I request the version of python from command prompt it says Python 2.7. What's going on here, is Django not installed on Python 3.7? Does the Google App Engine project not work with Python 3.7?

I am a bit of a newbie with Python but despite a fair share of googling, I have not been able to find any information about this error. Any specific help or general pointers would be very appreciated.