LG G4 :: Why Doesn't Google Play Music Show Playlists When Select Downloaded Only

I have an LG G4 with a 128GB microSD. I prefer to store all my music locally, and have about 100 gb of albums on the microSD. If I open Google Play Music and select "downloaded only," I can see and play all albums and songs stored locally. However, all my playlists, which show and play fine when streaming, disappear. Instead, my 30+ playlists (same as on iTunes) are replaced by 3-5 odd, random playlists that I never consciously created.

Since my playlists all reference music that is locally stored, why wouldn't they work the same for "downloaded only" as they do when streaming? I'm going to be moving to a place with horrible and expensive internet, so I need to figure out how to use pre-created playlists for locally stored music.