Similar errors occur in addClaim, addSource, etc .. but here is the backtrace for editEntity updating an item.
Welcome to the Pywikibot interactive shell!
>>> import pywikibot
>>> datasite = pywikibot.site.DataSite('test', 'wikidata', None, None)
>>> item = pywikibot.page.ItemPage(datasite, 'Q68')
>>> item.get()
Found 4 wikidata:test processes running, including this one.
{'claims': {u'P115': [<pywikibot.page.Claim instance at 0xb611b5ac>]}, 'labels': {u'en': u'Test123'}, 'sitelinks': {}, 'descriptions': {}, 'aliases': {u'en': [u'1417625792.03']}}
>>> item.editEntity(data=item.toJSON())
Logging in to wikidata:test as JVbot
Should be logged in now
SIMULATION: wbeditentity action blocked.
Traceback (most recent call last):
File "<console>", line 1, in <module>
File ".../pywikibot/page.py", line 3035, in editEntity
self.lastrevid = updates['entity']['lastrevid']
KeyError: 'entity'