It's the prop gun that has been accidently used. Very terrible news. Do you think this is a setup or complete accident?
Neither; it's negligence. This kind of "accident" requires a complete disregard for basic firearm safety, which actors handling firearms are supposed to be trained in by the weapons master. The weapons master is also supposed to personally supervise the filming to ensure all safety regulations are followed.
I do find it suspicious that no news reports actually mention the name of the weapons master in this case, since they are the most directly responsible for this tragedy. EDIT: The weapons master responsible has now
been identified as Hannah Gutierrez-Reed, and her competence seems sorely lacking as apparently this wasn't the first accidental discharge on the set, just the first fatality.