Apple Music playlist folders.

For the most part, Apple Music works quite well on my MacBook Air M1 running macOS Ventura and my iPhone 12 mini running iOS 16.3.1, so pretty much the latest of everything. I've also happily paid the latest slightly higher annual renewal fee.

Now here's the problem:

I can create playlist folders on my MacBook, and I can even put Apple curated playlists inside them, but when I go to my phone the Apple playlists are still in the root of my music library and the playlist folders empty. Also, I cannot delete the folders, nor can I create new ones, nor can I put anything in them with my phone. At least my workaround is to duplicate/convert the Apple playlists into regular playlists using my laptop. These playlist now show up inside the folders I put them in on my phone. The only issue with this is these regular playlists now no longer auto update so I only do that with certain ones such as any Essential albums from dead musicians as I somehow don't think they'll be coming out with any new stuff.

So the question:

Is this how it's supposed to work or is this a serious bug? I'm going with bug, a very big one. I mean how else can I be able to do things with the Music app on my laptop yet the Music app on my phone does not recognise such? We should have the same functionality on both iOS and macOS when it comes to things like Music. What if I don't have a computer, only a phone? What if I don't have access to my laptop for a period of time and really need to update my music library with my phone?

What gives?? Whatever happened to 'It just works'? Jobs must be turning in his grave.