Playlists, where?

Hello fellow DS4 owners/enthousiasts!

I’m a regular user of the ability to play music files from an USB-C stick. It’s a nicely structured stick with everything sorted into folders. Every now and I would like to have the ability to shuffle between a specific group of folders. Now I have to start playing one folder, and add each extra folder to the current playlist. A tedious job honestly.
There seems to be a Playlists section available on the library page. But how am I supposed to use that? I haven’t found any button to create a new playlist, not within the Playlist section, not in the submenu (the dots at the end of the row), not on the ‘now playing’ screen.

TL;DR: Does anyone know how to use/create playlists on the infotainment system (IVI)?