Hi Luis. Thanks again.
I went and checked my start up drive>user>Music and there are no files in there which is what I expected. As I mentioned, when I start Music, it opens with all my media correctly.
I went to my external hdd where my iTunes/Music folder is and found nothing out of the ordinary: no duplicate DB's and so on. I did find a folder called "previous Libraries" which I moved to trash, and then launched FCP and still the same empty Music folder with the ? mark as shown in the first screenshot.
Attached is a shot of my iTunes folder on the external HDD. One thing to note is my actual music files (hundreds of them) are all in the folder called "Music" not in the Media folder. I don't think this makes any difference since Music is finding them when I launch that, just not FCP.
At this point I may have to contact Apple. At this point the only thing I haven't tried is a clean install of FCP, but have a feeling that is not it.
[Edited by Moderator]