<ul><li>The PydanticSchemaGenerationError can occur due to nested defaultdict types in Pydantic models.</li><li>Pydantic struggles with inferring default factories for complex types like nested defaultdict with dictionary keys not among the supported types.</li><li>To resolve this, you need to set explicit default factories for each level of the nested defaultdict in your Pydantic model.</li><li>By following the step-by-step solution provided, you can update your Pydantic model with proper default factories and test the implementation to avoid the schema generation error in Python.</li></ul>

How to Fix PydanticSchemaGenerationError with Nested DefaultDict in Python?

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