Is "Preferred Activity Setter" a malware? I have noticed I have Preferred Activity Setter after the most recent update of Google Play Services, and it has been wreaking havoc on my Samsung Galaxy prevail LTE on my stock browser called "Internet" or "Browser" on older phones where it takes me to a site where there was moleculas content and Chrome loads the page then when finished it loaded page disappears except for the URL bar.

I have AVG Antivirus and it also says Preferred Activity Setter is considered a potentially unwanted program (PUP is now invalid, now considered malware). I have tried to force stop it, and it is still active while the "force stop" is greyed out.

Anyway to remove this without rooting it and doing it that way?
No. System apps cannot be removed without root privileges. Ignore this warning from AVG. I myself removed it using Titanium Backup, but once again you need to have root for that. If you are ready to take that step, knowing that it will void your warranty, then head over to XDA and research the rooting methods available for your particular phone model.