Is there anyone please who know how to set environment vars in pulumi with python, this information is NOT covered even one time in the documentation. Is it a dictionary {key:value} .

AWS package is directly derived from Terraform so I'd suggest looking at TF docs if something does not work https://registry.terraform.io/providers/hashicorp/aws/latest/docs/resources/lambda_function#environment I bet you need this

environment={
    "variables": {"key":"value"}
}