So wasn't too bad to fix in the end. Things I learnt:
The export playlist function didn't work as I expected it
The playlist files are stored under windows music library under a music bee folder rather than under the music bee install folder (this is the default - expect you can change it)
Use the relink function to point MB to the new location if the drive letter has changed:
https://musicbee.fandom.com/wiki/Relink_Music_File_Paths - You need to state the full file path rather than just the drive where the music folder was/is now located
When you open a playlist file in notepad it looks strange as per my post above. This is fine, that's what they look like.