Tried Un-checking resync if date changed and it did not fix the problem. I can't remember for sure but the conversion should be set to not convert.
When I first started trying to isolate the problem at one point when I was testing I thought it worked when I had just a small batch of test MP3s and did not change the folder naming for audio but never circled back around to test it again. I will try that tonight with what ever MC defaults for folder naming. My folder naming is rather complex so maybe that is throwing it off in the comparison for sync. My car radio does not recognize M3U playlists and only plays folders but I could simplify it if this would fix it.
My folder naming template:
"If(IsEqual([Grouping], Album), Various Artists\[Album], if(IsEqual(AlbumArtist(), Multiple Artists), if(IsEqual([Genre], Classical), Classical\Various Artists\[Album], if(IsEqual([Genre], Country), Country\Various Artists\[Album], if(IsEqual([Genre], Kids), Kids\Various Artists\[Album], if(IsEqual([Genre], Christmas), Christmas\Various Artists\[Album], Various Artists\[Album])))), if(IsEqual([Genre], Classical), Classical\[Artist]\[Album], if(IsEqual([Genre], Country), Country\[Artist]\[Album], if(IsEqual([Genre], Kids), Kids\[Artist]\[Album], if(IsEqual([Genre], Christmas), Christmas\[Artist]\[Album], [Artist]\[Album])))))) "