Is it at all possible to update the properties (in the property bag, not object properties or item fields) of folders/items/webs via REST? A MERGE fails.
@frevds, this is currently NOT possible via REST. Property bags are readonly. But can be updated with JSOM or raw JSOM XML package sent with PnPjs's SPHttpClient.
Thank you for the quick reply and valueable information. I grabbed the XML sent from JSOM and will try that. It calls the SetFieldValue method on the properties object.
@frevds, this sample from SIG call demo can be handy. Also, there is an option of using sp-clientsvc, but I can't provide you with a quick sample as I not so experiences with sp-clientsvc as @patrick-rodgers.
Thanks for the samples.
I was checking the Microsoft.SharePoint.dll with ILSpy. Turns out there is a SPFolder.Properties_Client property which returns an object of type SPFolderPropertyValues, having that SetFieldValue method. You can even trigger it using REST (webURL + "/_api/web/lists(@listId)/RootFolder/Properties/SetFieldValue(fieldName=@name,value=@value)"), but unfortunately the value parameter is of type object, and the call fails with {"error":{"code":"-1, Microsoft.SharePoint.Client.InvalidClientQueryException","message":"The method SetFieldValue cannot be invoked as its parameter value is not supported."}}. So that's almost, but still not possible.
Until then I am going to send raw xml as you mentioned to /_vti_bin/client.svc/ProcessQuery like this:

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Thank you for the quick reply and valueable information. I grabbed the XML sent from JSOM and will try that. It calls the SetFieldValue method on the properties object.