You have album art pictures because you dragged them into iTunes File Sharing so they got copied into that folder.
They should not cause any harm, nor cause an errors uploading to dropbox.
**** Forget about using dropbox for now.
You want to 1. Make a backup from INSIDE the ST3 program, which makes one separate file containing all songs and settings.
- Transfer that backup file using iCloud or Airplay to iPhone. **** Forget about iTunes, dropbox for all of this.
- Restore the backup onto your iPhone from within ST3. This will unpack the backup file and recreate all the songs in the ST3 folder on the iPhone.
Follow my exact steps in the earlier post. My procedure works and is complete for what you're trying to do. Forget Dropbox for now.
There's not much more we can say. Perhaps you need a video, but you won't get one today. But I think you are complicating things by thinking you need the PC, iTunes, or Dropbox for this process.