Space force-installs old gradio

This is driving me insane.

I am trying to launch a gradio space.
I have reduced requirements file to just:

But in the command line I see that after having successfully installed gradio 4.16 installation for some reason rolls to this:

→ RUN pip install --no-cache-dir gradio[oauth]==3.38.0 “uvicorn>=0.14.0” spaces==0.22.0 gradio_client==0.2.10
Defaulting to user installation because normal site-packages is not writeable
Collecting gradio[oauth]==3.38.0


I am completely confused. What is going on… Please help me.