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The issue is, in fact, worse than we thought. As previously noted, xero-python uses urllib3 under the hood and this results in 3 request retries by default. However, urllib3 also respects the Retry-After rate limiting header, and will time.sleep to wait until it should send another request. This can result in hour or day-long sleeps, which is extremely undesirable.
The proposed solution is the same as in the original discussion: