Pip will be upgraded upon immediately creating the virtual environment. If the pip upgrade fails, this should not cause the script to fail (treat as a warning). After the environment is created, it will not attempt further updates to pip.
The --model-dir option overrides the location of the models directory for stable diffusion, so that models can be shared across multiple installations. When --data-dir is specified alone, both the extensions and models folders are present in this folder. --models-dir can be used independently, but when used with --data-dir, then the models folder is specified by --models-dir, and extensions are found in the --data-dir.