Smart playlist based on ratings does not work properly when transferring them to iPhone

You can rate your songs in two ways on your MacOS Apple Music:

• • You can rate song by song; or
  • You can choose to rate by album

Previously I used create my TOP Playlist based upon ratings higher than 3 stars (4 or 5 stars), and was working fine. But today I created a new smart playlist, and on that I had a new album I just purchased, so before I could rate it, I chose to rate the whole album 4 stars (see picture 1),

as it would transfer to my iPhone, then I would listen to all songs and finally provide a more deeper review of the individual songs. For my surprise only a single song was transferred to my iPhone. This is the smart playlist I created (see image below):

I was trying to understand the reason it was not working and kept listening to the songs and marked the first song as 5 stars, and for my surprise it got transferred to the iPhone correctly. So I individually marked each song as 4 stars and the issue was resolved.

For some reason marking the album as 4 stars, and even though it shows all the songs as 4 stars, the smart playlist does not work properly when transferring it to the mobile devices.

Anyone else is facing this problem?