Apple music uploaded to iCloud

It is a blue solid lined cloud with an arrow pointing down. I assume this means if I want to have the music on my computer, I just need to click the little cloud. For some reason, iTunes does not realize that the music is actually on my hard drive and I don't need to click the little cloud to have it on my hard drive a second time, taking up another 5 dozen Gigs of data... Excuse my sarcasm, but I find this software painful and really wasting my time at the moment. Why would iTunes place an iCloud symbol next to the music that is already on my computer, makes no sense to me.

When I click the iCloud icon (solid blue line iCloud with down arrow) it downloads a second copy of the song in the exact same location as the version that already exists on my PC's hard drive. This is the issue... I believe this music should actually have a blue dotted line iCloud icon with no down arrow. If it did, I wouldn't be on this forum. Is there a way to convert the solid blue line icloud with down arrow icon to a dotted blue lined iCloud icon and make iTune realize the songs are already downloaded???

I imagine another solution to this dilemma would be to delete all of my apple music from my hard drive that is not recognized by iTunes and re downloading it. I have a limited bandwidth, so re-downloading all of my apple music is not an option I want to consider.