I do have an update:
I've reached out to Apple Support and sent them this thread. I asked if they're aware of the situation and if they are taking action to rectify it. For the record, this is kind of a long one, but they are very nice so 10/10 with customer service. Here is the condensed version:
AS: Just to be sure, your Music is not syncing between your iPhone and your MacBook, correct?
Me: Yes that’s correct.
AS: Thanks for confirming! I will be more than happy to help! Here is our plan, I will be asking some questions and be providing some steps, if they don't work we will continue with a call with my senior advisor, sounds good?
Me: Actually, if you could be so kind as to look at this Apple Forum thread: Stuck in “Preparing To Sync. This seems to be a major issue with many users. I would like to know if Apple is aware of this issue and if they are taking steps to correct it.
AS: Got it! I'm checking it, please allow me a second.
Me: Yes, of course. Please, take your time.
AS: Does it start working once you force quit the MD Crash report Tool?
Me: I haven’t tried it, as I’m not comfortable quitting a system process. However, some users state that they repeatedly plug and unplug their iPhone to get the MDTool to stop. I did try that method a while ago and it did work. People have found a few ways to get the MDTool to stop, but this isn’t a permanent solution.
AS: Thank you so much for letting us know! I will be adding this to my notes and submit it as a feedback for the next MacOS updates. If you want you can also submit this feedback to our web page Product Feedback - Apple. We have a team here at Apple, whose entire job is dedicated to reviewing this feedback, this feedback is escalated to our engineers team and they ad the patch in the security updates
Me: Okay, if you could please escalate this issue to the engineers, I would greatly appreciate it. As many of us would like to sync our music.
AS: Sure! I can see that this has been already reported so our engineers team is already working on a solution. I will add this case for their investigation. Just for documentation purposes, could you please confirm the MAcOS version running on your MacBook?
Me: MacBook: Sonoma 14.2.1, iPhone: 17.2.1, AppleWatch: 10.2 | I included the other devices as other users also seem to have issues syncing the Mac and have stated that the syncing works if they unpair their AppleWatch.
AS: Perfect! Thank you so much added it to the notes.
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As stated above, if these sorts of software issues are fixed through security patches, we may not have to wait for an update. As don't security patches get downloaded and are apart from MacOS updates?