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I found the solution.
The problem was that I (or the Spotify app) - long ago - had created a folder called 'Lokalt' (Swedish equivalent for 'Local Files').
(Always visible in the left pane among all your other playlists.)
So to anyone else experiencing this:
In the top left under the 'Home' and 'Search'-buttons , choose 'Your Library' -> then the 'Local Files' icon should be visible to the right.