Please remember one thing, whether a language is compiled or interpreted or both is not defined in the language standard. In other words, it is not a properly of a programming language. Different Python distributions (or implementations) choose to do different things (compile or interpret or both). However the most common implementations like CPython do both compile and interpret, but in different stages of its execution process.
Compilation: When you write Python code and run it, the source code (.py files) is first compiled into an intermediate form called bytecode (.pyc files). This bytecode is a lower-level representation of your code, but it is still not directly machine code. It’s something that the Python Virtual Machine (PVM) can understand and execute.
Interpretation: After Python code is compiled into bytecode, it is executed by the Python Virtual Machine (PVM), which is an interpreter. The PVM reads the bytecode and executes it line-by-line at runtime, which is why Python is considered an interpreted language in practice.