Unpackaged setters' fags - nice, laid back smoke (9)

I believe the answer is:

cigarette

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'smoke' is the definition.
(I know that cigarette is a type of smoke)

I don't understand the remainder of the clue.

(Other definitions for cigarette that I've seen before include "Tobacco wrapped in paper" , "harmful in nature" , "Fag, smoke" , "Gasper" , "Fag, coffin nail" .)

I've seen this clue in The Independent.

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