Apple Music Audio File Formats

I wanted to record a concert from a web video and sync this file with Apple Music so I can play it on my iPhone, iPad, etc. I opened up Audio Hijack and first recorded it as an MP3 file. I added this to Apple Music and it synced with my iPhone and I was able to play it. But then I started to experiment with higher quality. I first tried High quality ACC, but when I add this file to Apple Music, it plays fine on the Mac, but when I try playing it on iPhone it shows the file, but has a cloud icon with an X in it. Tapping on it, it says “The item is not synced across your devices.” This is strange because I uploaded right after the mp3 file and that is synced and plays. I assume this error message is just wrong.

I then tried recording with Apple Lossless, but I get the same error as the AAC file. Does anyone know what is going on? I’d like to use higher quality encoding than mp3 and I know it is supported on the iPhone since Apple Music itself has tracked encoded with AAC and Apple Lossless.