BASS's playlist support (BASS_CONFIG_NET_PLAYLIST option) extends BASS_StreamCreateURL/File, which creates a single stream. That means it can only play one entry (the first playable one) from a playlist, so it's only really suitable for internet streams, where each stream has its own playlist.
More general playlist support needs to be implemented by the app, ie. parse the playlist file and then pass each entry to BASS_StreamCreateFile/URL when you want to play them. Fortunately, the
M3U format is pretty simple: any line that doesn't start with # is a file/URL. The only slightly complicated part may be converting relative paths to full ones (using the playlist file's path).