Setting frequencies equal or greater than 800 MHz seems to work fine, so you need a CPU able to go below that in order to reveal the bug.
This one should go down to 400 MHz, and it does with the older kernel.
If, instead of trying to set a fixed frequency, one sets the governor powersave (cpufreq-set -c 0 -g powersave) then a variable frequency is set, but it should remain at the lowest frequency (as it does with the older kernel).