iTunes does not sync to iPhone after iOS 9 - no option for iCloud Music Library?

Since I've updated to iOS 9 (and now 9.0.1), I have no been able to sync my phone to iTunes.

I suspect this issue may be caused by the fact that both my iTunes and my iPhone 5S do NOT have an option for "iCloud Music Library".

It simply does not exist on either my phone or iTunes. Both preferences list ONLY "Show Apple Music".

Here's the bizarre situation.
iTunes recognizes my phone, no problem. It also recognizes that new material (songs) have been added.
However, when I press "sync" and "apply", a sync begins to occur > iTunes recognizes a change in memory (songs, as well as deleted documents and apps) > iTunes then adjusts the memory bar accordingly > but then at Step 2, skips over to Step 6 and, here's the catch, REVERTS the memory bar BACK to it's original status.
It's as if iTunes is trapped on my last sync.

Additionally, when I click in iTunes on My Phone > Music > Recently Added
ALL of my recently added songs (new material) is displayed, HOWEVER it is being showed as "whited" out, with a dotted circle symbol for every song.
I cannot for the life of me figure out why all my new changes will not sync.
Changes include:

- New songs on iTunes
- Deleted documents (deleted upwards of 50 documents) on my iPhone
- Delete apps (deleted about 10 apps) on my iPhone

Meanwhile, my phone is not effected (other than the fact that new songs won't sync).

SO, this is what I've done so far:

- Updated to iOS 9 and now 9.0.1.

- Updated to the latest iTunes software.

- Signed in to my apple ID on iTunes (again)

- Re-authorized my computer (again)

- Turned off "Show Apple Music"

- Back up iCloud on my phone

- Tried syncing iTunes through WiFi option

- Basic things such as plugging, unplugging phone, changing cables, rebooting computer, rebooting phone, etc.

Again, I have an iPhone 5S - 32GB.
I have 5GB of free storage space, so memory is not an issue.
I'm running on Windows 7.