i agree with your conclusions. But here's another way to look at the problem.

Suppose you owned a record store, and had the standard categories (rock, classical, jazz, etc). Where would you put the following albums (I'm choosing works I know fairly well):

Lou Reed, Metal Machine Music

John Cale, The Academy in Peril

Robert Wyatt, The End of an Ear

The Byrds, Sweetheart of the Rodeo

The simplest solution (and my choice if I ever owned a record store) would be to place these four discs with the more conventionally rock albums by the same artists, regardless of the trend of any one particular collection.

So Dolly Parton albums would go under country, and Lil Nas X would be placed in the Rap category. In other words, the overall perspective / focus of the artist would determine the category. There are still plenty of dilemmas: would the collaboration "Francis Albert Sinatra & Antônio Carlos Jobim" be considered jazz or world / international?