I’m running max2play v2.44 with squeezebox server, jivelite, touch display and my music running on a local USB attached device. Everything is integrated in one case. If I pull of the network connection (RJ45 cable in my case) and you startup the pi then you did not see your local music in jivelite. There are a lot of menu entries missing. Surely you can’t run any service that needs a network connection. But why I did not see my locally attached music in that case?
You should indeed see your local music. Please mount your USB drive permanently in the Filesystem/Mount menu and index it again in the Settings of the SBS.