I've tried everything short of doing a reinstall on my phone and computer, nothing seems to work. I also tried turning on desktop sync on my phone, with no changes. I can still see saved songs that I've uploaded in the past on my phone, even after changing the Local Files location on my desktop, it's only songs I'm trying to upload right now that are just not appearing on my phone.
DUDE (or female dude) - you just made my frustrations go away. wth kind of shitty setting is this. I had no problems with sync on my Android device, but I couldn't find out why it wasn't working on my iPhone. It's strange that Spotify doesn't show a pop-up saying: "you must enable this setting to download local files". Instead, it just leaves you clueless.