Wago setup with AWS Greengrass - best practice

There used to be an IPK to install directly on the host system.
But it provides only old version of Python. You could try to compile the package using the SDK, but not sure it will fit your requirements.
The best way once again is to use Docker.
Look at the category Python of the forum, you will find some example :

Using Docker has some benefits… Easier update process, easier deployment, you can choose between “full” and “small” version if you need a smaller footprint… You can easier create your own ready to use image with preinstalled dependencies.

I would definitely recommand this option.