I am completely in shock at how bad Xbox Music has become. Seriously, are they even trying at all? Xbox Music for Windows 8.1 is just unusable to manage music. I just manage my music through zune. I make playlists and then move them to my phone using the Windows phone app on 8.1. It generally worked on windows phone 8, occasionally I would have to restart my phone and my PC to get it to work, but I could always get my music. Unfortunately, now with 8.1, not only do the playlist that I want not sync, but all of the sudden I have playlist that I did not put on the phone (Understand, I have cloud music turned off!) I delete them and others come back.
While I really love my Windows phone I worked for Microsoft for 17 years and left 2 years ago, and I have some loyalty to them. I believe, I am now done.
Really a shame.