For some reason (past week or so) my iPhone hasn't been displaying my local files from my desktop, all it displays is this message:

"Local files is currently empty, install spotify on your computer to add and play songs from your local library"

But everything else works fine, if I add songs (non-local songs) into a playlist, they will sync up. 
I am also able to play switch between devices.

I am so puzzled, I tried everything from allowing exceptions on my firewall, disabling firewalls, (Upnp is on), reinstalling (3rd time) on both the desktop and the mobile device, removing the devices off my account and start fresh, but nothing seems to be working. 

Also I've tried creating a new playlist and adding a single local file to it to see if it would sync, nope, it displays in the new playlist but it doesnt sync. 
(I may have tried a few other things but cannot recall them all)

So my question is, why does my desktop which has the local files doesn't show up on my iOS device, yet when I create a new playlist with a local file song, it displays but doesnt sync?

Thanks in advance,
Nathan