When connected to Library Server and I (i) do deletions of a playlist, or rename a playlist or move a playlist and then (ii) resync the library and then (iii) reconnect to the library: the deletions are not reflected. Instead I have all of the playlists that should have been deleted, the playlists with the old names (in addition to playlists with the new renamed names), and the playlists in their old locations (in addition to the playlists in their new locations). In short, I end up with a lot of duplicates, albeit with different names and locations.
It appears as though the sync process is not dealing with playlist deletions.
I should add as well that with the initial connection to the library server each time the MC client app is run, the context menu selections to delete or rename playlists are greyed out. When I reconnect to the library server (by loading the library server library from the library menu item) those items are then fully functional.