Possibly - but I would prefer to use manjaro-tools to create a Manjaro ISO.
And yes you can create an ISO from your running system - it requires som manual doing but possible.
Basically you need to
- install the manjaro-tools-iso package
- initialize iso-profiles repo
- copy the folder /etc/manjaro-tools to your ~/.coinfig
- create a file in ~/.config/manjaro-tools/iso-profiles.conf with content
run_dir $HOME/iso-profiles - copy the content of your user’s home to the iso-profile’s desktop-overlay/etc/skel
- build the profile
buildiso -p profile-name
Your error comes from having installed a system wide python package using sudo pip.
Remove the package using sudo pip - Reinstall it using the package manager
Then rerun your update