Since cd439bc5138fc22a4f2532f90c87629c1deec3e3 (committed 2 years ago),
`org-element-set-element' can handle strings fine.
Yes, you are right. I got confused by the indentation.
Also, I cannot reproduce your problem in current stable release of Org.
You may want to update it.
It's a clean Spacemacs installation, it get's fresh Org from ELPA and compiles it. I found out that removing the *.elc files helps... weird. It might be a Spacemacs-related issue or a general Emacs issue but looks like Org-mode is fine :)
Thanks for your help!
Regards, Ilya.