Fix: Replace Deprecated distutils & Ensure .tests Directory Exists

Issue Summary

This PR addresses two issues:

1. Deprecation Warning:

   • distutils is deprecated in Python 3.12 and will be removed.
   • Replaced distutils.dir_util.copy_tree(src, dest, update=1) with shutil.copytree and shutil.copy2.

2. FileNotFoundError in .tests Directory:

   • Sometimes, the .tests folder was missing, leading to an error when trying to write app_fs_init.sh.
   • Fix: Added os.makedirs(test_dir, exist_ok=True) to ensure the directory exists.

Changes Made

• ✅ Replaced distutils usage with os.makedirs and shutil for better compatibility.
• ✅ Added os.makedirs(test_dir, exist_ok=True) to prevent FileNotFoundError.

Impact

• Fixes compatibility with Python 3.12.
• Ensures the .tests directory is always available.

Reviewers: @razvand