Your set list really depends on a number of factors. Number one is vocals. At least one lead vocal that sounds somewhat unique, powerful, and polished. Multi-vocalists that hit on all cylinders is a major plus. No amount of instruments can fix an anemic vocal situation, and way too many bands fall short in this regard.
You really need to pick your genre and start focusing on tunes that fit the scene. Consider surveying the clubs, bars, etc in your specific local area and study each place, who’s frequenting, are they dancing, sitting, etc. Watch each band with critical eyes/ears and study each song as well as audience reaction (dancing/sitting/ turned away and talking/grimacing etc.)
Sounds like you’re at the beginning of your live gigging trek. If you’re competing in the cover band circuit, your songs don’t have to strictly follow originals but need to be readily recognizable by the hoi polloi. You can apply your own stank to each tune but each must be good enough to either keep attention or compel the folks to dance.
Alternatively, you could play (as I currently do) in a band with a BL that never uses set lists and suddenly starts tunes that the rest of the band has never played or possibly even heard... great for big-bill tips but a bit advanced and too stressful for many. Every night is a new exercise in keeping up with the Jones