This calls into question, what exactly is “measurement”. Measurement is to use standards of practise, along with the required tools, to assign a quantitative value to a specified property. The important point, which is commonly overlooked, but brought to the forefront by quantum mechanics, is that it is the act of measurement which establishes that relationship between the specified property, and the quantitative value.
This is contrary to the common naive realist way of thinking, that there is already a value associated with the property prior to measurement, and measurement simply determines this value, or discovers it. So for example the naive realist would look at a glass of water and assume that there is a certain quantity of water in the glass, regardless of whether its been measured. But that is to assume that there is already a relationship between the glass of water and a specific quantitative value, before the water is even measured. In reality, that relationship is caused to come into being through an act of measurement. Measurement determines the specific value, producing a relationship between the value and the thing measured. Therefore the relationship does not exist prior to the act of measurement.
Consider how I described “measurement” above. The outcome of a measurement is dependent on the act of measurement. This is contrary to the naive view that the act of measurement replicates a preexisting relationship between the object to be measured, and a quantitative value.
Now, an act of observation is a descriptive act which involves taking note of what is sensed. And we can divide that descriptive act into two types, qualitative and quantitative. The qualitative is a simple judgement. The litmus turned from pink to blue, for example. The quantitative description on the other hand, is a complex judgement, because it also employs principles of measurement. The solution went for pH 3 to pH 9 requires principles, standards, to relate the colour to the number.
Notice in the example, the qualitative is a single application of standards, to judge the property, colour. The quantitative is a double application of standards, determine the property, then judge the quantity.
So Einstein’s uneasiness was a little misguided if we consider this dual level of observation. Since the qualitative judgement is always required prior to the quantitative judgement, to determine what is to be measured, we can say it is logically prior. So a failure in the qualitative judgement would necessitate a failure in the quantitative judgement, but not vise versa. This means that the issues with the quantitative judgement which Einstein was worried about, do not necessarily reflect back on the qualitative judgement.
The problems of quantum physics are associated with quantitative observations, the measurements of a photons, quanta of energy. However, qualitative observations of light energy note wave activity, rainbows, colours, and interference. The measurement issues do not apply to these qualitative judgements.
So the principal problem is that the quantitative judgements are fundamentally incompatible with the qualitative observations. Energy transmission as a wave cannot be made compatible with the energy transmission of a particle. This is a fundamental principle of physics. Energy moving from A to B as a wave is a completely different type of motion from energy moving from A to B as a body.
That there is a “pre-existing value”, is the naive realist understanding of measurement dismissed above. In reality, the act of measurement produces, or determines the value, which is associated with the thing. The value of a thing does not pre-exist its determination.
And the issues with “set up” are a feature of the quantification standards. We have only devised the means for measuring a specific quantum of light energy, the photon. Until we have the means to actually measure the energy of light as waves directly, there will always be incompatibility between the qualitative observations and the quantitative observations. This is because the two describe fundamentally different, and incompatible means of energy transmission.