I find the easiest & most reliable way to create m3u Playlists for SanDisk players, using a software program on a Mac, is with the free software “mp3tag”. Unfortunately, mp3tag does not run “natively” on a Mac.
Fortunately, there is a way to run mp3tag on a Mac using Wine Bottler. This shareware program comes with a built-in method to install mp3tag. http://winebottler.kronenberg.org/
Using mp3tag within Wine Bottler solves the problem of incorrect CR LF line endings using a Mac.
ALSO, I discovered it is not necessary to include “Extended Info” in the ID3 tags for SanDisk players.
In mp3tag, under Tools, I found a check-box for “Write Extended Info”. When this box is not checked, mp3tag does not include any text lines with “#EXTM3U” in the ID3 data.
AND, your discussion does not mention the problem of all those pesky “dot underscore” files that are created on FAT32 drives , including using a Mac to manage music files on SanDisk players.