AFAIK it only shows the song immediately if the phone can identify it offline. It can only do that with a limited set of songs so if you listen to something less known it won't be able to recognise it without talking to google first. When you click the music symbol on the lock screen it actually uses online services to identify what's playing.
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It used to identify all the time though, without touching the music symbol. My last.fm used to show what I listen to at the grocery store or dentist's office for example ha
The song list gets updated from time to time. That's the only thing that I'm aware has changed. I think you might have just gotten lucky with songs being included in the list before and now, possibly after an update to the list, are less lucky.
But if I tap the lock screen icon it can ID anything including obscure black metal haha
Yes, because that's using Google's servers to identify the music. It's not offline anymore which is why it's not doing it by default.
This is how I have it set up. It worked today as you can see, and I rarely actively try to ID a song.
This happens to me all the time as well as at a glance not showing weather. Unfortunately the only fix I know is to clear storage for the Google app. You'll need to reenable ok Google and maybe redo some other configurations after, but now playing should work again, at least for a little while...