Old exported playlist (files) won't import correctly to library mainly based on iCloud music library

[ZamboniRunningAmok]

Hi friends,

Scenario:

1. Exported regular (manually built) playlist from iTunes library which referenced locally stored mp3s.
2. Subscribed to Apple Music.
3. Built new iTunes library with 90% Apple tunes provided music mainly via adds to iTunes Music Library (not via iTunes Match).
4. Imported saved playlist (.xml) to new library knowing that at least some songs exist from the old library.
5. Imported playlist is totally empty.

Again, most of the songs are in the new library (with status as Apple Music or Uploaded) but it appears that iTunes is not recognizing that the playlist songs are present in the new library.

I removed the <location> tag from the playlist xml but this did not make a difference.

Does anybody know the reason behind this or a potential workaround? I would hate to have to rebuild these playlists manually.

iTunes version: 12.3.1.23.

Thanks
Zamboni...