You are right about quantum entanglement. But the team member was talking about quantum teleportation, not just entanglement, and I suspect that you misunderstand the difference.
'You cannot set the value at one end and have it appear on the other.'
Right, about entanglement.
'properties of physical bodies can be transmitted across arbitrary distances'
Right, where the properties are quantum states.
'This is a fundamental misunderstanding of entanglement.'
No, it's not. Quantum teleportation depends on having an entangled state, which is used to move some other quantum state from here to there. It also depends on sending some information from here to there in another communication channel, possibly classical (i.e., non-quantum). I suggest you read more about quantum teleportation, e.g.:
https://en.wikipedia.org/wiki/...