YouTube Music is a streaming service where subscribers can stream your music, just like other streaming services.
The music you distribute to YouTube Music through DistroKid will not be identified by Content ID, unless you also opt into Content ID through DistroKid's optional YouTube Money service. You can submit your work to YouTube Music, and opt into YouTube Money with no issues.
If you opt into YouTube Content ID but want to allow specific videos (on YouTube) to use your music without Content ID claims, you can do so here.