I’m not sure if this solves your issue but you can uncheck ‘add songs to library’ then only songs/albums that you actually add to your library show up and others only live in playlists!
Oh, that’s super interesting! I see the setting and I’ll check if it solves my issue (it sounds like it does). I wonder if this setting got introduced or changed in the last year or two, because I don’t remember having the problem before that.
This setting is going to change your life (maybe hyperbole...). It's one of the things that makes me really appreciate Apple Music.
With this setting, and an interface that can group playlists by album and filter them by artist, you can get as many additional "virtual libraries" as you want, kinda like Twitter lists. Remember you can also put playlists themselves into folders and create dynamic playlists.
You can assemble music for various situations or events, manage things like "planning to check out" etc without polluting your core library.
If you want to go deep on this and use iOS, check out Marvis Pro also.
It‘s possible in the mac Music app. On iOS, it requires an app like that. Before I knew about Marvis, I had build out a system to navigate album playlist via Shortcuts.