I don't think there is any self-hosted server that has a good playlist generation and is fully local, because it would need someone to classify the music in order to work. You can try to connect it to last.fm. I think Jellyfin has the addon for it.
jwt55
joined 1 year ago
Readme on the repo says it's just scrobbling and fetching metadata. But afaik you can make instant mixes based on this data.
Here's some tool to sync last.fm playlists to jellyfin: https://soundiiz.com/tutorial/sync-lastfm-with-jellyfin