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This is related to the question mentioned here:

According to both that answer and to Apple's own support, this should be possible. Basically I want to add music from "Apple Music" to playlists, so I can easily find it again. I often listen to their selected playlists and want to save the best songs from there, on my own lists.

However - the checkbox option mentioned in the above, is greyed out for me. I cannot deselect it. So if I try and add music; I get a message that I must enable iCloud Storage before I can add the music to my library.

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Any ideas as to why this option is disabled?

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The reason your Add songs to Library when adding to playlists checkbox is greyed out is because you haven't enabled the iCloud Music Library (see the checkbox above the one that is greyed out).

If you enable iCloud Music Library, then you can store your Apple Music songs and playlists in iCloud and access them across all your devices.

In summary, by ticking the iCloud Music Library checkbox, the Add songs to Library when adding to playlists checkbox will no longer be greyed out. Then you can enable/disable it as you wish.

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