I am at a loss as to how to move my downloaded music files out of the i2psnark folder and into my persistent volume.
I can see the files as superuser when I enter 'sudo nautilus' in the root terminal but when I try to copy or move a file it would pop up with 'The file cannot be handled because you do not have permissions to read it'.
Any idea how to resolve this? If I shut down Tails i am sure my files will be destroyed and I don't think I can make the i2psnark folder persistent either.
Please help.

Yeah, i2psnark doesn't make it easy for us to solve this in a good way. Try starting nautilus in the following way:
I just tried, and that works for me.
You can. In the persistence configuration tool, add
/var/lib/i2pas a custom directory. This will also save the i2p netDb etc. which should speed up the i2p bootstrap significantly. At some point we will add a default preset for i2p in the persistence configuration tool.