OK, I fixed it. Sort of. In the message for installing bluetooth on the squeeze box server (on the page where you do the install), it says to add the favorite to the squeezebox (it’s a message in the ‚log‘ for the install, in yellow on the page at the top), although it looks a little like it’s doing it for you the way it’s written. I assumed it was because if you watch the video on how to use bluetooth, it does install the favorite (or at least that step isn’t shown). However for some reason my installation did not add the favorite, so I manually added it.
It works now, but is a bit kludgy. Connection has lots of drop outs. Perhaps I should upgrade to a pi4 with much better bluetooth or get a dongle. I see some other threads about the badly implemented BT on the pi3. Hope this helps someone else, but for me, its still not quite ready for use.