I wish I had found this thread earlier. Somehow I got it working again, but my problem was:
Downloaded HLS Media files would not play. It would STREAM totally fine, but the moment I downloaded the lossless file, it would play for 0.1 sec and then not respond. I'm coming from an older 2015 iMac, and I've been moving stuff manually to a Mac Studio M2 Max.
Long story short, I didn't know what to do, so I... deleted the whole Apple Music folder. I thought, what's the harm, since everything can be re-downloaded anyway. But I forgot I had some older files that aren't part of the subscription service, and I don't know where the CD's or original files are. Thank goodness I'm an iTunes Match subscriber, so technically I can just re-download everything.
Still, it was really weird that the only files that would not play, were the ones that were previously downloaded locally. I wish I'd known about the security setting and adding Apple Music to it, maybe that would've fixed it.