Individual songs from Apple Music playlist isn't marked a played

I can't figure out if there is a setting or a way around this. But I find it frustrating that the individual songs in a playlist from Apple Music isn't counting as a played song. To demonstrate this, I created a smart playlist that lists every song played within the last 1 day. Not a single song from the Apple Music playlist is there.

Is it because the Apple Music content isn't in my library?