Hi,
Sorry I forgot to mention that I'm using latest IOS 9.3.4 on iPhone and latest iTunes application 12.4.3.1 on PC.
I also enabled the icloud music library on both iTunes properties and iphone setup--> Music.
tried it 5 times. each time I press merge many of my not purchased from itunes songs are gone.
When I disable the icloud music library and connect back iphone to the pc, and press on the iphone icon on the iTunes on the general page (summary) and mark again "Manually select music" then sync, all songs are back.
I don't mind working without icloud music library, the only problem is that I cannot have anyway to remember songs which I like because
1) I cannot create any playlist of loved streamed songs (not from my library).
2) If I mark a song with "love" icon, there is no way to show a list of all loved songs.
When I had a subscription to grooveshark in the past, the whole fun was to create a playlists of my own of songs I found on the way.
But it appears I cannot manually select which playlists to sync on my PC while syncing + have this really basic option just to create a playlist of links to songs I like (I don't really need to download the full sync, just give me a list so I won't need to write down on a paper every song that I liked while listening to the radio/streamed music.