"Adding tracks to a playlist won't trigger a conversion."
Yet that is exactly what is happening.
Originally I dragged some WAV files into iTunes. Later I selected them and in the menu selected to convert them to MP3. I then can clearly see them in the "Recently added" menu, and when I check they are MP3 files. I then select them and drag them into the playlist I created. Then I go into that playlist and select the song and BAM it is a WAV file now. FYI, I have been using Apple products including iTunes since 1999 and this has never happened to me before. This just started about a week ago.