Itunes and Nano sync

So all of my songs are in the "cloud". I'm trying to make playlists and drop them into the iPod icon in iTunes. When I do, I'm getting an error message saying "Some of the items in the iTunes library, including [song title] were not copied to the iPod [my name] because APple Music songs cannot be copied to an iPod". A large majority of these are songs that I have either purchased on my own or have ripped off of CD's. What is going on?!