I confess, I am confused, what is the deal with local files? I have about 23000 songs in my iTunes library, they show up fine in Spotify for Mac 1.0.36.124.g1cba1920 under 'Local Files', but I cannot get them to show on my iOS devices. 

My understanding is that a Spotify playlist can hold a maximum of 10000 songs, but is this the reaon that Local Files are not showing on my iOS dev's? As long as I am on the same LAN as the iMac (Mac OSX 10.11.6) on which my iTunes library lives, I should easily be able to access those songs from all my devices shouldn't I?

I normally have a Smart DNS service server addresses in place of my regular ISP ones on my home router, I have disabled those, but this has not solved the issue.

I am also unable to import iTunes playlists to Spotify desktop for Mac. 

Seriously frustrating Spotify. Sort it out.