Is anyone else experiencing this issue???
Yes, I lost all my playlists. That’s one of the main reasons I went with Plex. I trust it will be returning soon.
This is working on 1.18.7.2457. You just need to manually make a playlist first.
Then choose the Import from iTunes from the three dots menu.

Your sever is not updated…The most recent is 1.18.8.2468…and the iTunes option is gone so if you want that service don’t update the server