Question about FiiO X5 2nd gen

The x5 2nd gen plays files sequentially from a folder. If desired, two adjacent folders can be linked so that after the last file in the folder, the unit jumps to the first file in the next folder. There is also a function for playing playlists. There are many things that are unclear to me. As I understand it, suitable playlists must first be created on the computer (M3U playlists) and then loaded onto the memory card. Unfortunately, I don't know any more about this. I am very satisfied with the device so far.

I personally create an m3u file in each genre/subgenre. This is not displayed under "playlists", but can be played in the respective folder. A batch file synchronises the player's memory with the library on my server every time I connect it, and I update my m3u files with the playlist creator. Works great!

In addition to my first answer, I would like to add the following: In the x5 2nd device itself, playlists can be created and also favourites can be designated.

Yes, the X5 2ng gen supports cuesheets. If the cue file and the audio file are stored in the same folder, the songs are displayed individually on the device, even in the folder view.