The setblock command fails when targeting a block which is located in an unloaded chunk with the error message "Cannot place block outside of the world". This occurs when running in a command block, or when running the command manually.

What I expected to happen was...:
setblock command targeting a block that exists in an unloaded chunk is correctly updated.

What actually happened was...:
Error message "Cannot place block outside of the world" is shown and the block is not updated.

Steps to Reproduce:
1. Teleport to a test chunk to force the chunk to be created, if it hasn't already been.
Ex: /tp @p 1000 100 1000

2. Teleport to another spot, far enough away that the test spot is no longer loaded.
Ex: /tp @p 100 100 100

3. Run the setblock command, targeting a block in the test chunk.
Ex: /setblock 1000 100 1000 minecraft:cobblestone 0 replace

If this is (unfortunately) an intended feature perhaps the error message can be changed to better describe the problem. In my opinion a block in an unloaded chunk is not outside of the world. I would think a block outside of the world would be one that is at a negative y value or a y value greater than the max.