Get rid of the word set (and add a space after the comment symbol)
# vim: filetype=sh
This fits with the first form of modelines
There are two forms of modelines. The first form:
[text]{white}{vi:|vim:|ex:}[white]{options}
[text] any text or empty
{white} at least one blank character (<Space> or <Tab>)
{vi:|vim:|ex:} the string "vi:", "vim:" or "ex:"
[white] optional white space
{options} a list of option settings, separated with white space
or ':', where each part between ':' is the argument
for a ":set" command (can be empty)