At some point in the future, I will need to move my folders that contain my music to another location. My concern is my playlists will no longer work. This is based on my assumption that the path for each song is embedded in the database supporting my playlists.
Move your files and then in Roon’s Settings edit the Roon Watched folder so it points to the new location.
It will re-find your files and all will be well.
Do not create a second watched folder, whilst the first still exists … if this is done Roon will add the files as new entries (because it is still expected the old ones to turn up later).