I am trying to create a homebrew race with thick bark skin that cannot benefit from more than a +1 Dex bonus to AC regardless of what type of armor is worn. The unarmored version of the limit applies fine when no armor is equipped, but when armor is worn it seems like the item overrides the racial trait. E.g. when I'm not wearing armor the dex bonus is capped at 1, but when I put on light or medium armor the limit goes to unlimited or +2 respectively. Based on what I've seen in other forum threads I believe I'm setting it correctly, this is what I have:

Modifier type: Set
Modifier subtype: AC Max Dex Armored Modifier
Fixed Value: 1
Nothing entered for the other fields

 I've made sure I've saved changes to the modifier, the trait, and the race. Each time I try something new I create a whole new trait with a new name to make sure I'm not getting stale data from the server. I saw a workaround that involved creating a magic item that isn't classified as armor but has all the same effects, but I'm trying to do this for a race instead of an item. Anyone have any idea how to fix this?

The Set Modifier is funky. Because, when armor is donned, there are two instances of that Modifier in play, the stat always defaults to the higher one.

Is there a better modifier to use, or other way to implement it in homebrew?

Nor sure. Lemme play around and find out.