I don't know what to do about Distrokid's YouTube policy... Help!

This form is very daunting to say the least.  But don't fret!  You should be fine checking everything, simply because their system (and most other systems like them) are flawed in that they don't understand how music professionals actually work together.  

The only part to make sure you do is to select the 2nd option from the bottom - "I did part of the music, not all of it".. then you can add "SFR Beats" , which we're on there already.  There might be an invite code you'll send us for your "teams".  Then you can select your percentage from there... which can be 0 since we don't require any royalties. 

Some choose to upload to their own YouTube channel and monetize it like that, just to avoid all the "mess" they're referring to.. but that's up to you.

Here are some more common concerns regarding YouTube and solutions to help you be successful with your music: https://soforeal.zendesk.com/hc/en-us/search?utf8=%E2%9C%93&query=YouTube