During handling of the above exception, another exception occurred

[Gribouillis]

what if i wanted to specifically handle KeyboardInterrupt in the code that calls this code, and the KeyboardInterrupt happens during the handling of NotADirectoryError

It doesn't prevent you from catching KeyboardInterrupt.

import os
import time

try:
    try:
        names = sorted(os.listdir('foo.txt'))
    except NotADirectoryError:
        time.sleep(2)
except KeyboardInterrupt as exc:
    print("Hello, I caught KeyboardInterrupt!")