Installing Python 3.8 on windows 7 32bit with SP1

To install Python 3.7 or 3.8, in windows 7 operating system, you need to install Windows 7 Service Pack 1 first and then Update for Windows 7 (KB2533623) (if not installed already).
Your system is missing the Update for Windows 7 (KB2533623), hence in your Python installation log file it is showing detected windows 7 sp1 without kb2533625, although it should have been detected windows 7 sp1 without KB2533623, I think this is a mistake from Python developers.
Go to: My Computer -> Properties and check the System Type. If it is 64-bit Operating System:

1. For Windows 7 Service Pack 1, download the file windows6.1-KB976932-X64.exe from Windows7 Service Pack-1 download page
2. For Update for Windows 7 (KB2533623), download it from this link of Microsoft's official website

If your OS is 32-bit:

1. For Windows 7 Service Pack 1, download the file windows6.1-KB976932-X86.exe from Windows7 Service Pack-1 download page
2. For Update for Windows 7 (KB2533623), download it from this link of Microsoft's official website