OH my gosh...this did it for me also!!!
Apple you really need to return to the basics and make things simple. I spoke to the Apple support people and they did not know about this fix
I have spent the past few days trying to get my songs out of itunes into my iphone. I had the same issue (grey dotted circle but songs would not download)
There are WAY TOO MANY settings and hidden functions in the IOS and Itunes makes this even more complicated. This all needs to consolidated into a single control area of IOS, instead of splitting things up between Icloud, Itunes, IOS etc etc.
1 Anything stored on your phone, should be managed by the phone only
2 Anything stored on the computer should be managed by the computer only
3 Anything stored on icloud should be managed by icloud only.
ALL TRANSFERS between the above should be managed by the apple ID
4 -If a user wants to back up anything on their device it should back up to itunes and to icloud and to the computer (identically and at the same time) this feature should not cost extra and should be automatically built into the price of the phone. 64gb phone = 64gb backup in icloud
5- there should be no restriction on what is being backed up (i found out the hard way that itunes does not back up music (I had 50gigs of wav files disappear)
6-Simplcity and useful tips should be a fundamental element on any button or selection in itunes or icloud. Most of us have spent days trying to figure out what buttons do and what selection boxes do. If you showed helpful tips or help files with useful information we would not have to spend days and days researching the web to find a solution.
7 Family sharing is a mess and should be consolidated better. If I want to share my data with family it should be managed by my Apple ID plain and simple.
If we wanted something to be this complicated I would move to Android which is now actually less complicated in some areas.
We have multiple Ipads, Iphones and now Apple watches that we use in our family and in our business. It has become ridiculous to manage all the devices and share the information with ease.
I am very disappointed 😟