I drive the same year and Denali trim you mentioned. I mainly use a Bluetooth connected iPhone for my music but I also have been using a stubby 128gb SanDisk USB drive that is left in the USB port under the center console lid. Formatted in FAT32. Amazon still sells it for $16. SanDisk 128GB Ultra Fit USB 3.1 Flash Drive - SDCZ430-128G-G46
There is also a 256 and 512 but I don't know if they will work.
You can rename your USB drive and that is what will show up on your screen as a music source. I have noticed it spending 30 seconds to a minute indexing all of the files after you first plug it in and power the radio. Music from the drive will play while it is indexing but you just can't navigate to other songs until it is done. Note that the larger drives with more files will likely take more time to index.
iTunes already organizes all of my music files into folders named after the artists. I just went to the folder where iTunes stores all of the media and copied every artist folder onto my SanDisk USB.
I haven't experimented with creating playlist so I'm not sure how that is done but the option is available on the touchscreen. Music is sorted by song, artists, genre, album, etc. Play anything you want or just shuffle it all. Song information displays just as it does while play from your phone and the album art displays on the screen if you have that too.