This might be a somewhat academic question (since there's no gas with $\gamma = 1$), but I am still interested in this.
Let's consider ideal gas and polytropic process with index $n$. We know, that when $n \to 1$ we get $\mathrm{d} E = 0$, i.e. the energy is constant.
On the other hand, for adiabatic process we have the following $$ \mathrm{d} E = - p \mathrm{d} V = - p_0 \frac{V_0^\gamma}{V^\gamma} \mathrm{d} V $$
One integration later... $$ E = - p_0 V_0^\gamma \int \limits_{V_0}^V \frac{\mathrm{d} V}{V^\gamma} = \frac{p_0 V_0^\gamma}{\gamma - 1} \left( \frac{1}{V^{\gamma-1}} - \frac{1}{V_0^{\gamma-1}} \right) = \frac{p V}{\gamma-1} \left( 1 - \left( \frac{V}{V_0} \right)^{\gamma-1} \right) $$ In the limit where $\gamma \to 1$ we get $$ E = p V \log (V_0 / V) $$
Isn't this a bit of a contradiction? If $n = 1$ (isothermal process) we get $E = \text{const}.$, however, if $n = \gamma$ and we let $\gamma \to 1$, then $E = p V \log (V_0 / V)$ which is not a constant. Note that $\gamma$ doesn't have to be strictly 1, we get a curve that's close to $p V \log V$ even when $\gamma = 1.1$.