I've tried installing and reinstalling the compatibility patch but this error keeps popping up: Sound\music.m3u was not found in its proper place.

So, where is this place, and how can I do it manually?

Same issue here...

Worked once I ran the patch tool and selected the folder as

c:\program files (x86)\steam\SteamApps\common\Age2HD

When I selected it, the tool tried to add \New Folder to the end of the path. You need to delete this and have it go into the Age2HD folder.

Hola, tengo el mismo problema. Cual es el procedimiento que hiciste en detalle para solucionarlo?No encuentro ese archivo de sonido que piden para reubicarlo. Y en caso de tener que reinstalar el steam y el parche del conquerors, cual seria el procedimiento?

Hola
prueba esto
https://support.voobly.com/display/vkb/KB1054+Clean+installation+of+Aoe2HD+with+compatibility+patch

Followed the steps exactly. Still getting same error "Sound/music.m3u was not found it its proper place"
It's installing into the correct folder. I didn't run into the /new folder problem.

hi
patch new home: [You must login to view link]

I followed the exact same steps as in the instruction as well. Still getting the error

Make sure that the installation path is exactly C:\Program Files (x86)\Steam\steamapps\common\Age2HD

No added /New Folder at the end or anything else

Check if your Compatibility versions is UP TO DATE. I was downloading the COMPATIBILITY PATCH at this website: [You must login to view link] or other. THIS IS NOT THE UPDATED VERSION - IT'S THE V4. they currently running V5. SADLY voobly team didn't fix that up. i did this (unistalled v4 and installed compatibity patch v5) and it's working fine. You can find the updated version here: [You must login to view link]

Sorry to revive an old thread, but wanted to share a fix for this issue since a definitive one hasn't been posted. The issue, as the diagnostic tool states, appears to involve the file "music.m3u" being out of place. On my computer the equivalent file was actually named "music.mp3." Simply changing the extension on that file from .mp3 to .m3u was sufficient to correct the problem for me.