Thank you for looking into this. I indeed did use the *SET operator* on an 
existing LocationGroups within a campaign.

I am following the example 
from 
https://github.com/googleads/googleads-php-lib/blob/master/examples/AdWords/v201705/CampaignManagement/SetBidModifier.php
 

In the same campaign, I am able to use the SET operator to mutate Location 
and Proximity without issue.

This is how the campaign locations appear in adwords (see that I've used 
the API to bid adjust all Location and Proximity 20%):

<https://lh3.googleusercontent.com/-p5_-UA3_YRs/WVPL_gr0RnI/AAAAAAAGV6w/-RFowKhetcwL7rWyEtve0cBg1I1KqqvRACLcBGAs/s1600/Campaign%2BManagement%2B%25E2%2580%2593%2BGoogle%2BAdWords.png>


On Wednesday, June 28, 2017 at 2:39:08 AM UTC-7, Peter Oliquino wrote:
>
> Hi Nick,
>
> As of v201702 
> <https://developers.google.com/adwords/api/docs/guides/migration/v201702> of 
> the AdWords API, the IncomeOperand can no longer be used as a 
> FunctionArgumentOperand for LocationGroups. When passed as a new operand 
> via the ADD mutate request to the services such as the 
> CampaignCriterionService, AdGroupFeedService, CampaignFeedService, and 
> CustomerFeedService, it will result in the same 
> FunctionError.INVALID_OPERAND_TYPE error that you encountered.
>
> However, I will review with the team regarding your scenario if this is 
> indeed the expected behavior since you used SET instead of the ADD operator.
>
> Thanks and regards,
> Peter
> AdWords API Team
>

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