diff --git a/.pre-commit-config.yaml b/.pre-commit-config.yaml
index 247a7357c..5ff4d6832 100644
--- a/.pre-commit-config.yaml
+++ b/.pre-commit-config.yaml
@@ -25,7 +25,7 @@ repos:
   - id: seed-isort-config
     args: [--application-directories, '.:src']
 - repo: https://github.com/pre-commit/mirrors-isort
-  rev: v5.2.2
+  rev: v5.4.1
   hooks:
   - id: isort
 - repo: https://github.com/ambv/black
@@ -41,7 +41,7 @@ repos:
     additional_dependencies: [black==19.10b0]
     language_version: python3.8
 - repo: https://github.com/pre-commit/pygrep-hooks
-  rev: v1.5.1
+  rev: v1.5.2
   hooks:
   - id: rst-backticks
 - repo: https://github.com/asottile/setup-cfg-fmt
diff --git a/docs/changelog/1918.bugfix.rst b/docs/changelog/1918.bugfix.rst
new file mode 100644
index 000000000..2256775c3
--- /dev/null
+++ b/docs/changelog/1918.bugfix.rst
@@ -0,0 +1 @@
+Upgrade embedded pip to ``20.2.1`` and setuptools to ``49.4.0`` - by :user:`gaborbernat`.
diff --git a/src/virtualenv/seed/wheels/embed/__init__.py b/src/virtualenv/seed/wheels/embed/__init__.py
index a65c7eab7..62dda502d 100644
--- a/src/virtualenv/seed/wheels/embed/__init__.py
+++ b/src/virtualenv/seed/wheels/embed/__init__.py
@@ -6,33 +6,33 @@
 BUNDLE_FOLDER = Path(__file__).absolute().parent
 BUNDLE_SUPPORT = {
     "3.10": {
-        "pip": "pip-20.2.1-py2.py3-none-any.whl",
-        "setuptools": "setuptools-49.2.1-py3-none-any.whl",
+        "pip": "pip-20.2.2-py2.py3-none-any.whl",
+        "setuptools": "setuptools-49.4.0-py3-none-any.whl",
         "wheel": "wheel-0.34.2-py2.py3-none-any.whl",
     },
     "3.9": {
-        "pip": "pip-20.2.1-py2.py3-none-any.whl",
-        "setuptools": "setuptools-49.2.1-py3-none-any.whl",
+        "pip": "pip-20.2.2-py2.py3-none-any.whl",
+        "setuptools": "setuptools-49.4.0-py3-none-any.whl",
         "wheel": "wheel-0.34.2-py2.py3-none-any.whl",
     },
     "3.8": {
-        "pip": "pip-20.2.1-py2.py3-none-any.whl",
-        "setuptools": "setuptools-49.2.1-py3-none-any.whl",
+        "pip": "pip-20.2.2-py2.py3-none-any.whl",
+        "setuptools": "setuptools-49.4.0-py3-none-any.whl",
         "wheel": "wheel-0.34.2-py2.py3-none-any.whl",
     },
     "3.7": {
-        "pip": "pip-20.2.1-py2.py3-none-any.whl",
-        "setuptools": "setuptools-49.2.1-py3-none-any.whl",
+        "pip": "pip-20.2.2-py2.py3-none-any.whl",
+        "setuptools": "setuptools-49.4.0-py3-none-any.whl",
         "wheel": "wheel-0.34.2-py2.py3-none-any.whl",
     },
     "3.6": {
-        "pip": "pip-20.2.1-py2.py3-none-any.whl",
-        "setuptools": "setuptools-49.2.1-py3-none-any.whl",
+        "pip": "pip-20.2.2-py2.py3-none-any.whl",
+        "setuptools": "setuptools-49.4.0-py3-none-any.whl",
         "wheel": "wheel-0.34.2-py2.py3-none-any.whl",
     },
     "3.5": {
-        "pip": "pip-20.2.1-py2.py3-none-any.whl",
-        "setuptools": "setuptools-49.2.1-py3-none-any.whl",
+        "pip": "pip-20.2.2-py2.py3-none-any.whl",
+        "setuptools": "setuptools-49.4.0-py3-none-any.whl",
         "wheel": "wheel-0.34.2-py2.py3-none-any.whl",
     },
     "3.4": {
@@ -41,7 +41,7 @@
         "wheel": "wheel-0.33.6-py2.py3-none-any.whl",
     },
     "2.7": {
-        "pip": "pip-20.2.1-py2.py3-none-any.whl",
+        "pip": "pip-20.2.2-py2.py3-none-any.whl",
         "setuptools": "setuptools-44.1.1-py2.py3-none-any.whl",
         "wheel": "wheel-0.34.2-py2.py3-none-any.whl",
     },
diff --git a/src/virtualenv/seed/wheels/embed/pip-20.2.1-py2.py3-none-any.whl b/src/virtualenv/seed/wheels/embed/pip-20.2.2-py2.py3-none-any.whl
similarity index 93%
rename from src/virtualenv/seed/wheels/embed/pip-20.2.1-py2.py3-none-any.whl
rename to src/virtualenv/seed/wheels/embed/pip-20.2.2-py2.py3-none-any.whl
index 3d0d3f8ae..78bad7a0e 100644
Binary files a/src/virtualenv/seed/wheels/embed/pip-20.2.1-py2.py3-none-any.whl and b/src/virtualenv/seed/wheels/embed/pip-20.2.2-py2.py3-none-any.whl differ
diff --git a/src/virtualenv/seed/wheels/embed/setuptools-49.2.1-py3-none-any.whl b/src/virtualenv/seed/wheels/embed/setuptools-49.4.0-py3-none-any.whl
similarity index 87%
rename from src/virtualenv/seed/wheels/embed/setuptools-49.2.1-py3-none-any.whl
rename to src/virtualenv/seed/wheels/embed/setuptools-49.4.0-py3-none-any.whl
index 308e2f2ed..9669d9227 100644
Binary files a/src/virtualenv/seed/wheels/embed/setuptools-49.2.1-py3-none-any.whl and b/src/virtualenv/seed/wheels/embed/setuptools-49.4.0-py3-none-any.whl differ
diff --git a/tests/unit/activation/test_xonsh.py b/tests/unit/activation/test_xonsh.py
index 60df8a46b..47877f849 100644
--- a/tests/unit/activation/test_xonsh.py
+++ b/tests/unit/activation/test_xonsh.py
@@ -6,13 +6,12 @@
 from flaky import flaky
 
 from virtualenv.activation import XonshActivator
-from virtualenv.info import IS_PYPY, PY3
 
 
 @pytest.mark.slow
 @pytest.mark.skipif(
-    (sys.platform == "win32" and IS_PYPY and PY3) or sys.version_info[0:2] == (3, 9),
-    reason="xonsh on Windows blocks indefinitely and is not stable yet on 3.9",
+    sys.platform == "win32" or sys.version_info[0:2] == (3, 9),
+    reason="xonsh on 3.9 or Windows is broken - https://github.com/xonsh/xonsh/issues/3689",
 )
 @flaky(max_runs=2, min_passes=1)
 def test_xonsh(activation_tester_class, activation_tester):