Game states that "The block couldn't be placed" when using /setblock to place air in a space occupied by a tile entity, despite working

When using /setblock to place air blocks, the game will state "The block couldn't be placed" in red text, despite clearly working. On the right of the chest in the attachment was another chest (to make it a large chest), but the error message appeared after I removed it by /setblock-ing down air in an area with a chest.

Also affects the /fill command with barrier blocks.

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Code analysis by Marcono1234 can be found in this comment.