The “expects resource, boolean” suggests that $conn was meant to be a database connection (resource / handle) that failed. i.e. returns resource on success, false on failure.
In other words, the problem is with the code in the setup.php file, not necessarily the query.
Please post the setup code - with anything sensitive redacted.
This line is correctly coded, however your problem is that when you called mysqli_query() on the line above, something caused the query to fail as @colshrapnel said. When the query fails, instead of returning a result set, it returns false. Hence you’re passing in ‘false’ to mysqli_fetch_assoc(), not a result set (resource), hence the error.
You should check whether your query worked successfully before you start trying to use the results.