iPod Nano - iTunes Sync Issue

I downloaded iTunes January 2025 and restored my Nano to factory default settings. However, I cannot drag and drop music from iTunes to my Nano nor can I add a playlist. When I try to autofill a playlist, I get this warning - "iTunes cannot add any songs to the iPod [iPod Name] because it already contains all the songs in the playlist [Playlist Name]." However, there is no music on the Nano.

I am trying to load music from my apple music subscription. If I try to copy a song to my Nano, it states that I need to download it first. However, after I download the songs, it won't allow it to be synced.