Each entry in your play list must include the path to the location of the mp3 file in the watched folder, e.g., if you want to play "myfavoritesong.mp3" that is located in the folder "my favorite album" and located in the directory "mymusicforalexa" each listing in your m3u file must be as follows: ...

I think the answer to this may be to simply copy the m3u file into your watched folder and do a re-scan. Provided the m3u file is properly formatted, it should work (at least it did for me.)

Thanks for this great post; it worked well for me after a couple of tries, needing to get all settings correct. Thanks again.