Incorrect use of entity_access()

At line 357 of inline_entity_form.module, you have

<?php
    if (entity_access('create', $settings['entity_type'], $new_entity)) {
    ...
?>

The problem is that $new_entity instead of being an object may be a string, the name of a content type in the case where the entity is of node type. This causes an error in the function entity_metadata_no_hook_node_access() when it tries to load what it expects to be a node. Arguably this is a defect in entity_access as there seems to be no way to check creation rights by type.