How to use family sharing with AppleOne but have separate playlists?

Apple One allows you to bundle Apple's subscriptions for a more reasonable price. It works like any normal family sharing subscriptions. And subscriptions are account specific. So each Apple ID/account under family sharing will have their own playlists.

Family members access each service from their own Apple IDs, so they see only their own content, preferences, and recommendations — not the whole family’s.

Family Sharing - Apple

Hope that helps!

Yes, that's how Family Sharing is supposed to work. Each user has their own content, but purchases can be shared.

tt2