Did you try uninstalling the plugin - then do a reboot (important) and after that reinstall the plugin and reboot again ?
Sometimes it happens that the plugin is still shown as installed after uninstalling and rebooting. In this case ssh to your device, cd /data/plugins/music_service/ sudo rm -r nanosound_cd reboot again and the retry to install.
I did quite a lot of testing with this plugin and it always helped me to get it working again. Also no issues with version v2.586 or 2.587