Why is Music showing music as being downloaded ?

Just updated to Sequoia 15.0.1 on my iMac and I have noticed in Music that my music library is showing as being downloaded.

I have purchased some music from iTunes, but more than 95% of my library is from my old CD collection that I have ripped onto a hard drive. I do not subscribe to Apple music (but have just bought a new iPhone) and wondered if perhaps this is why - do I have a free trial of apple music ?) Appreciate any help that can be provided.