/bin/sh: 1: python: not found make[2]: *** [Makefile:168: out/romlayout16.lds] Error 127
I ran in to this error the other day in a clean build environment and was going to mention it in the thread about python in the build system, but Peter Surge already commented here on it.
If you are on Ubuntu or Debian you likely need to install "python-is-python3", which symlinks python to python3, since Debian kept python as python2 and makes python3 programs require that they use run as python3 not just python. With the removal of python2, they remove the original python link that pointed to the python version.
Branden