I've seen some other posts suggesting there may be issues with the current build of Music when it comes to editing playlists. You might try holding down option+cmd as you launch Music to open the app in its safe mode and see if that helps at all. Do you have an Apple Music subscription? If so has the track in question been added to your cloud library, i.e. is it purchased, matched, or uploaded? If not it would be ineligible for any of your cloud based lists, so they might not be shown in the context menu. You also cannot manually add tracks to smart playlists or playlist folders.
tt2