Compilations not recognized

It merely points your way toward the solution.
I’ve actually linked it already above.

The key is in the embedded meta tags. Plex requires you to use the Album Artist tag (which is a separate tag than the regular Artist tag)

  • It must not contain more than one name. Which means with collaboration-type albums, you must decide which artist shall be the “main” one. Then tag only this name. For traditional sampler-style albums, there is the special artist name “Various Artists” that you can use.
  • All tracks of one particular album must have the same Album Artist tagged (each track can have a different Artist tag)
  • You must use the folder structure “Album Artist” > “Album Title” > [Tracks]
  • All albums which are stored inside one particular “Album Artist” folder must have identical content in their Album Artist meta tags.

Use a dedicated meta tagger app to set the Album Artist tag. The file properties tab of the Windows file explorer is inadequate.
I recommend mp3tag. It can help you with turning folder names into tags, or vice versa, generating folder structures and file names from meta tags.

Depending on how much editing you’ve performed already, it might be easier to scrap the whole music library and create it afresh – after you’ve gone through and changed the folder structure and embedded meta tags acording to the rules I laid out above.
If you’ve only edited a few albums/artists, perform the Plex Dance with just these.

If you are using mp3 files, set your meta data editor to use ID3v2.4 tags.

After making all these changes, you rather should perform the Plex Dance with all Various Artists albums. Plus all albums of the artists which “grabbed” all your VA albums.

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