You are right, an element $v$ of a vector space $V$ is a vector and nothing else. It does not make sense to call it covariant or contravariant if we only look at $V$.
However, the origin of these concepts is in physics. Physical entities $X$ like velocity, electric field, etc., are quantified by measurements which produce an $n$-tuple $(x_1,\ldots,x_n)$ of real numbers. For example, quantifying a velocity produces $3$-tuples. Each measurement is based on a measurement space in which we observe the entity and on a coordinate system on the measurement space (a $3$-dimensional spatial coordinate system or a $4$-dimensional time-spatial coordinate system or something more complicated) with respect to which we measure the components $x_i$ of the entity $X$. Usually one makes one measurement per coordinate direction.
That is, we have a measurement space $\mathbb R^n$ and describe $X$ by a measurement result which is an $n$-tuple $(x_1,\ldots,x_n) \in \mathbb R^n$. But we must be aware that the entity $X$ is not an element of the measurement space $\mathbb R^n$; it is an element of a state space $V$ which has the same dimension as the measurement space. Anyway, the state space $V$ is isomorphic to the measurement space $\mathbb R^n$, an isomorphism $\phi : V \to \mathbb R^n$ being determined by our measurements.
Let us emphasize again that $X$ is not the same as $\phi(X)$; the latter is just a measurement result. Obviously we may get different values $(x_1,\ldots,x_n)$ of our measurements if we use different coordinate systems, and this is the subtlety: The isomorphism $\phi$ depends on the chosen coordinate system $\mathfrak C$. Thus we obtain a whole family of isomorphisms $\phi_{\mathfrak C} : V \to \mathbb R^n$.
In the simplest case we consider coordinate systems having the same origin; we do not take into account translations or moving coordinate systems (as in special relativity). In other words, we have the measurement space $\mathbb R^n$ (e.g. three-dimensional space or four-dimensional space-time) in which our measurements are performed, and for each ordered base $\mathfrak B$ of $\mathbb R^n$ we get an associated isomorphism $\phi_{\mathfrak B} : V \to \mathbb R^n$.
Of course there must be a definite relationship between the quantifying tuples associated to different coordinate systems (resp. ordered bases), but it is a priori not clear what this relationship looks like and what its mathematical description is.
Although the elements of the state space $V$ are vectors and nothing else if we only look at $V$, they have additionally a certain relationship with the measurement space $\mathbb R^n$, described by the isomorphisms $\phi_{\mathfrak B}$. We must not forget this relationship.
What happens if we make a change of basis of the measurement space $\mathbb R^n$? Given ordered bases $\mathfrak B$ and $\mathfrak B'$, we get an automorphism $\phi_{\mathfrak B'} \circ \phi_{\mathfrak B}^{-1}$ on $\mathbb R^n$. As already mentioned, it is not a priori clear what this automorphism looks like, and the answer depends on the given physical entity. The most elementary two cases are that $\phi_{\mathfrak B'} \circ \phi_{\mathfrak B}^{-1}$ behave covariant or contravariant. This means that if $A$ is the matrix such that $b'_i = A b_i$, then $(\phi_{\mathfrak B'} \circ \phi_{\mathfrak B}^{-1})(x) = A x$ for all $x$ (covariant) or $(\phi_{\mathfrak B'} \circ \phi_{\mathfrak B}^{-1})(x) = (A^{-1})^T x$ for all $x$ (contravariant).
So you see that covariance and contravariance are not intrinsic properties of the vectors of the state space, but properties which become visible only if we consider the relationship between measurement space and state space. I think it was a great achievement to recognize that measurement space and state space need not be identical although they have the same dimension.
In the covariant case the state space $V$ can be identified naturally with the dual of the measurement space, in the the contravariant case it can be identified naturally with the measurement space itself (see Why is tensor from a vector space covariant, not contravariant?). But this is a purely mathematical point of view, not all physicists will perhaps be interested in these identifications.