So I can't remember if I've done this since I transferred to a new Macbook Pro which is on Monterey which made the change from iTunes to Music, but it used to work, now it's not, but so far appears sporadic.
I noticed this after I added "[Clean]" to the title of some tracks like I always do, which of course triggered the file to not be able to be located (I hate this - this wasn't an issue on Traktor), so I did the usual thing I do and attempt to autorelocate which usually works (I've added the paths). This time though, it will not find them. I double checked the paths and everything, the location of the file hasn't moved.
So then I went ahead and did a manual sync of everything, so it re-added the track as a new entry. When this condition exists, usually I'll get an alert that the file is already in the library when I attempt to auto-relocate. This time - nothing.
Odd thing is, I just tried the same thing with a different track which is stored in the same place (default Music directory), and it had no problem autorelocating it (cue head scratching)
Hope this doesn't continue to be a sporadic issue.