Make sure Squeezelite is not occupying the sound card (add „-C 5“ to the command line options of Squeezelite to automatically vacate the card after 5 secs of inactivity).
Do you use the Squeezebox Server usually? If so, you should migrate to the Spotty plugin for Squeezebox Server. It adds Spotify Connect and Spotify in the LMS to all your Squeezelite players. Here’s how you set it up
If the issue is the same with Spotty, this might be directly connected to Spotify or a related package.
If not, our Spotify Connect player has an issue.