[flhthemi]

@CaptainHero

Here's what I did to workaround this bug/issue:

1) You have a Playlists folder in the userdata folder
2) When you created those sources skinshortcuts created an .xsp file for the source in the userdata\addon_data\script.skinshortcuts folder. Mine was named 1.xsp yours could be something else. Open it/yours with your favorite text editor and IF the path to the source is correct for your desired menu option that's the file you want to use. Lets just say for example it was named as mine is, 1.xsp.
3) Copy that file to userdata\playlists\video folder. You can rename it if you want just remember the name of it.
4) Now start Kodi again and open the skin settings menu customizer and create/edit the desired menu item.
a. Choose Item for Menu - Select the "Video Library then "Playlist" (NOT PLAYLISTS) and it displays your .xsp file! Select it now.
b. Select "Display" When asked what to do with the playlist and you're pretty much done. You may need to sort the list once you've opened your new menu item using the sort options on the side blade menu.

I don't know why things changed but I know they changed around V.18 nightlies approximately in March this year. I also don't know that this is an acceptable workaround but it's been working great for me since then.