The most common and most likely answer to this crossword clue is the 10 letter word LABYRINTHS
I've seen this crossword clue in The Daily Telegraph
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More clues leading to the result LABYRINTHS
Buddy explains!

The straight part
We know that "Settings for old stories/misleading passages" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case settings for old stories/misleading passages = labyrinths.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does LABYRINTHS mean?
LABYRINTHS noun- A maze-like structure built by Daedalus in Knossos, containing the Minotaur.
- Part of the inner ear.
- Anything complicated and confusing, like a maze.
- Any of various satyrine butterflies of the genus Neope.
- To enclose in a labyrinth, or as though in a labyrinth.
- To arrange in the form of a labyrinth.
- To twist and wind, following a labyrinthine path.
- To render lost and confused, as if in a labyrinth.