.py files contain Python source code written by developers. Importing a .py file builds a .pyc file with bytecode to make importing faster later. .pyo files were for .pyc files created with optimizations before Python 3.5.
.pyd files are binary, unreadable files for Windows. They extend Python functionality like DLLs in Windows. To create them, install setuptools.
PYD files can be imported into Python programs to expand functionality. They are like DLLs but written in Python.
Software may need updating to support PYD files. Check you have the latest version.
PYD files are compiled Python code as dynamic libraries. They allow loading Python modules at runtime into other programs.