I had/still have the incorrect ipod/iphone free space calculation but with iOS7.1 on an iPhone5 and using the latest & greatest iTunes version 12.0.1.26.
All was working well, then I tried to move an unwatched rented film from iTunes to my iPhone, so that I could watch it there.
Whenever I deleted my 10GB Music content on the iPhone, from iTunes, the "fill" bar dropped to show now 11GB of free space, but when I pressed "sync" to activate the transfer, the "fill" bar instantly filled-up again with Music. On iTunes, the iPhone music content was shown as zero, on the 'phone it was still showing everything. I managed to get the film on, just by deleting my podcasts. When I took the iPhone to a different Mac - iTunes 12 there showed a nearly empty phone, but on the 'phone itself all the local music was still available to play. Soft restarting/hard restarting the 'phone, unplugging, synching had no effect. I finally went to iOS7 Settings/General/Usage/ which shows 'STORAGE Available & Used', and from there I highlighted Music, got to the Edit Page, got to the 'Delete All Music' page, deleted everything, hit "Done" and thought that that would be that!
in fact, my iPhone5 this morning, in 'STORAGE Available & Used' on the phone shows still 9.3GB of Music, whilst this time iTunes 12 "fill" bar shows 10.96GB FREE, with zero Music, from my 16GB iPhone which is docked. I can read - at the same time on the same phone that it is Full & that it isn't Full
iP5 4.3GB Available
iTunes 12 bar 10.96GB Free
the final thing is that Music on my phone is set to Not Show Cloud items, just local, and on a phone that has no music (according to iTunes 12) I have 48 artists and 1209 Songs that I can still actually play, I just randomly sampled & everything plays. I deleted ALL music from inside my phone less that 12 hours ago, using my phone. And I'd previously deleted ALL music from my phone, using iTunes 12 about 16 hours ago!
so I'll write this in bold I can read - at the same time on the same docked iPhone that it is Full & that it isn't Full
Schrödinger and your cat, where are you?