New iTunes doesn't let me fill a new playlist with songs off an iPod

Question

THIS USED TO WORK ON OLDER VERSIONS OF ITUNES. I own an ipod Shuffle. Sometimes iTunes Autofills my Shuffle with a cool mix of songs from my iTunes library. I want to make that new set of songs into a new playlist in my iTunes. I used to be able to do this by simply: (1) create a new playlist in iTunes, (2) select all the songs on my Shuffle, (3) drag the songs from my Shuffle on to the new playlist's icon.
Sometimes, I won't use the Autofill feature and I will manually drop songs from my Library into my Shuffle. I'll drop a couple songs on to my Shuffle each day. Over the course of a month, I will have slowly built up a set of songs of all my current favorites on my ipod shuffle. Well, of course, I'd like to make all those songs on my Shuffle into a new playlist in iTunes, so I can "preserve" the set of songs I spent weeks building up. Again, I used to be able to do this very easily, but for some reason, in the latest version of iTunes, I can not drag and drop songs from my Shuffle into a playlist.
Let me make clear, I own all this music and all the songs on my Shuffle are already in my Library on my Macbook. This is a matter of creating PLAYLISTS from whatever songs are on my Shuffle at any given time. PLEASE BRING BACK THIS CAPABILITY.

Answer 1

Turn your phone off, then force it into recovery mode & restore it:
Leave the USB cable connected to your computer, but NOT your phone, iTunes running, press & hold the home button while connecting the USB cable to your dock connector, continue holding the home button until you see “Connect to iTunes” on the screen. You may now release the home button. iTunes should now display that it has detected your phone in recovery mode, if not quit and reopen iTunes. If you still don’t see the recovery message repeat these steps again. iTunes will give you the option to restore from a backup or set up as new.
Make sure you have no anti-virus software running or any firewalls...turn all of that stuff off.