Stopped working, out of order - it erroneously being set up (7)
I believe the answer is:
retired
'stopped working' is the definition.
(I've seen this before)
'out of order it erroneously being set up' is the wordplay.
'out of' indicates the answer is hidden within the clue.
'being set up' says the letters should be written in reverse.
'deriter' is hidden in the letters of 'order it erroneously'.
'deriter' back-to-front is 'RETIRED'.
(Other definitions for retired that I've seen before include "Put out to pasture" , "No longer working" , "Withdrew from active participation" , "retreated" , "Ceased working" .)