[BLOCKING] Setblock destroy on tile entity crashing under certain circumstances

Verification builds: 1.2.3 & 1.2.5 (530691)
Summary: Minecraft crashes when putting the expansion chest item into the hopper.
Impact: Destroys a key feature of Infinity Dungeon and prevents the player from being able to upgrade their chest.
Repro Steps:
1.Fly to 1739 91 1368 and open the chest, it will drop a chest
2.Take the chest to the hopper and throw it in
Observed Results: Game crashes
Expected Results: Game not crash

Extra Information:
I have narrowed it down to the command block at 1678 84 1326 which is: "setblock 1675 92 1325 chest 2 destroy" trying to destroy a dropper at that location. If the command is run as the player, it works fine, but for some reason it isn't liking that command from a command block and it makes no sense as to why. I have been unable to replicate on a clean world.

MCM-137 Repro.mcworld has been sent via slack.

Screenshots/Videos attached:
https://www.youtube.com/watch?v=l27ZrLWzoy8