That "Supported types" setting is based on file extensions I believe, and not internal file type, which is actually shown in the [Compression] field. The file extension indicates the audio file container format, and not the Codec, which is what ALAC is. I don't have any ALAC here to check what that looks like at the moment, but I think you will need to add "M4A" as a supported file type, for example. Some ALAC files have the extension ".alac", but that is less common, and I don't think it is a standard convention.
The previous setting should have come across from MC21 during the upgrade, but sometimes the MC installation doesn't find the previous version, in which case it is best to make a Library Backup in MC21 and Restore it with settings in MC25.
If you had to re-import media files into MC25, then the installation didn't find the previous Library. But sometimes settings don't all seem to come across either, maybe due to functionality changes.
Anyway, check what extension your ALAC files use and add that to the setting in "Options > Handheld > Files, Paths, & More > Supported Types".