I’m aware that this post is very old but this is an on going issue. Like some have said I do believe there are license agreements and copyright very much involved.
Solutions:
today July 30th 2018 1:30 pm lol I found a solution; now because I just did this I’m not sure how long it will stay. This includes purchasing the songs through iTunes & I’ve provided pictures. Simple fix whatever song is blurred out just buy it in iTunes, that song will continue to be grayed but the purchased one is available. I know many of you are not interested in buying music these days with downloading & all but if you can use other methods like the one below & get most songs back then spending a dollar & some change is worth it.
The first thing I tried was logging out of my Apple ID, signing back in, opening iTunes Music accepting the “iCloud Music Library Sync” msg that pops up. Then my fully grayed out Drake Scorpion album was ungrayed accept for one song “Talk Up” so I just bought it lol it was only 1.29. Also I had to redownload just about all songs that weren’t bought. I may have done something wrong; still, I rather have and even simpler fix but this method is mentioned on most forums with a few optional steps that can also be done. It can be done with the phone or computer. It’s also on this one someone left the link.
Mentioned in this forum is a “Check Selection” method which plenty of users said worked however I don’t see this method available with just the IPhone.