I use the latest image for Raspberry Pi image (m2p_rpi3_default_234_wps.img).
I have pulse audio selected (using bluetooth).
I have gotten it working by changing the player name back to max2play. When I changed it in the Logitech Media Server player settings page to headphones it seemed to break squeezlite. I also changed the hostname from max2play and that caused same issue but when all changed back it seems to work okay.
Could you advise if its possible to change the player name though??