Transferring downloaded Apple Music from iTunes library onto iPod Nano 7th Gen library or playlist

I have an Individual subscription to Apple Music. I am able to download music from Apple Music to my iTunes Library. After connecting my iPod Nano to iTunes, I am unable to transfer (usually by dragging) that music to my iPod. Also, on my iPod, under Settings/General, there is not an option to turn on Apple Music.

Does anyone have any guidance here, or am I not able to ever transfer Apple Music to this iPod device?

Thank you