Hey! It looks like you are missing a few things. Did you test this?

--------

Before
teleport %player% to {spawn}

After: Remove the % as it is not a text
teleport player to {spawn}

--------

Before
permission: Admin
permission message: You dont have permission to do that
executable by: players
trigger:
send "<light blue>Set spawn to your location!" to player

After: Make sure the setspawn commands actually sets the spawn variable!
permission: Admin
permission message: You dont have permission to do that
executable by: players
trigger:
send "<light blue>Set spawn to your location!" to player
set {spawn} to the player's location

I hope this was helpful