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I don't have any experience with it, but it looks like AzuraCast does what you want.
Fwiw there's some self-hosted discord music bots you can use as well - https://github.com/jagrosh/MusicBot
This is newer. my friends stream all the time with this > https://github.com/codetheweb/muse
Have you tried Mopidy or MPD daemon? There's even a mopidy-party extension that is