Somehow I missed your screenshot posting when you made it two days ago. Sorry about that.
Luckily I spotted the problem right away.
Your playlist definition is looking for files with ALAC compression: Apple Lossless. The file you show in your second screen shot doesn't show it's compression type. But it would be very difficult for that file to be ALAC, because it's bitrate is only 256. ALAC should be closer to 800 - 1000 for bitrate. So that file is probably AAC compression, which MC identifies as "MP4 AAC".
If you want to include AAC files in your list, change the definition to include that compression type also, or just include all M4A files, since those are both M4A types (ALAC and AAC).
Brian.