Hi all Apple users as frustrated as I was.
To Clarify, if you turn off ICloud Music it will tell you it will delete your music (that you virtually have on your device from the cloud, not all)
BUT it deletes all your playlist
You have to turn Icloud music back on , and choose 'Merge' option.
Your device will spin for 10-20 minutes while it reads the internal files on your computer to rebuild all the playlists.
I have just as of 7/22/2015 been on the phone with Apple Support who claim this is NOT a bug.
I also found that if you are out of Wireless Range, and choose ICloud Radio, it will hang. If you then try and go to 'My Music' it will hang.
So short point, just turn ICloud Music off and then on, Merge your playlists, let it rebuild.
All of my Ratings, and Playlists came back.
Stupid, Absolutely. While I was on the phone with them to demonstrate a point I did this and it took 30 minutes to rebuild my 8,000 songs into Playlists.
You don't need to restore you phone. If you want to
1. Backup all of your playlist via ITunes File => Library => Export Playlists.
2. Backup your Windows 'ITunes Music Library.xml' by copying it outside of where it resides (My Desktop for example)
3. Backup your ITunes Library.itl the same way.
You can then restore your phone, turn off Icloud. Then copy the files above back, import your playlists and you are back.
My music is one of the most important things in my life and I am shocked Apple is doing this to us.
I told them they were forcing me to the cloud and as nice as it can be, it isn't for me.
That should help 99% of those with Playlist Problems !
Good Luck!
Kelly