@Andrew > It does work, I'm running the same config.
Have you checked that you're sharing the XML with other applications within iTunes' Preferences > Advanced:

I have:
iTunes 12.4
Rekordbox 4.1.1
Path to XML: Users/(myName)/Music/iTunes/iTunes Library.xml
Rekordbox, in iTunes, can see the tracks I have in "All Tracks" in the iTunes explorer. But is unable to see anything when I click the playlists folder. I don't know what's going on any help is appreciated. I thought this issue was resolved.
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@Andrew > It does work, I'm running the same config.
Have you checked that you're sharing the XML with other applications within iTunes' Preferences > Advanced:

Hello - I have the same issue with same configuration.
I Tunes is sharing XML with other app.
So should be something different to help fixing
Please help
Thank you
@Pulse > Yes, I have that check box checked. I don't know what the problem could be.
@Andrew > Just to rewind a second... you say "unable to see anything when I click the playlists folder."
Did you click the + icon to the left of the folder or just the folder itself?
You have to actually click on the playlist themselves; the folders don't currently show recursive contents of the playlists below them.
I'm having same problem in lastest versions: Big Sur v11.2, Apple Music (AM) v1.1.3.3, and Rekordbox (Rb) 6.5.0. I can see/play tracks from AM playlists within Rb but ONLY if they are NOT in an AM folder.
All AM playlists that are organized in folders are invisible (note that I can see the folder title in Rb and it acts like a folder with a drop menu triangle icon, but no playlists appear when the folder is opened in Rb).
If I select a playlist that is not in a folder, everything works perfectly and all songs within appear and can be played in Rb.
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SPECIAL SETUP & THINGS TRIED
Note that I'm using an external drive for music files and the AM database. I've tried Rb > Prefs > Advanced > Database > iTunes > iTunes Library XML to force selection of the external AM database (though works same when selecting either the above or Framework setting).
Also tried Rb > Prefs > Advanced > Database > Database Management set to the same external drive, but neither of the above settings change anything with all playlists in AM folders still missing while able to access tracks in playlists outside folders.
There is no AM > Prefs > Advanced > Share iTunes Library XML checkbox. That must have been an iTunes thing.
Made the AM iTunes Library.xml file read and write by everybody to ensure sharing parameters are as lenient as possible.
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I'm out of ideas and don't see any other settings to try in AM or Rb. Any help is much appreciated!