Can't drag and drop files from finder into new playlist in apple music app

MacBook Pro M1 Max running Ventura.

This is a new computer for me and I had not seen this on my old MacBook.

I try to drag a file from the finder into a newly created playlist but it won't work. No error message, just bounces back. This works with all files from my library, including ones I've bought at iTunes store, band camp, ripped from old CD's, etc, and in all formats, mp3, m4a, etc.

I CAN drag a file from the finder into a previously created playlist. This issue is only happening with newly created playlists.

Here's my current work around...

I can double click the files to get them playing in iTunes and then once they're in the "songs" list, I can select the tracks, left click and choose add to playlist. That works.

Funny enough once I have done that, those playlists now act like older playlist and I can go back to dragging and dropping from the finder.

It's just this one specific action... dragging and dropping files from finder into a newly created playlist that doesn't yet have any music in it.

Any thoughts for help. Kind of a pain to have to manually add to playlists like that.