FLAC is not recognized on USB or /data/INTERNAL

New to Volumio!. Just installed it on a Rpi3. Everything seems to work fine except the player is not recognizing the flac files. I have a USB flash drive attached. I can ssh and view the files. USB drive is formatted as a FAT32 file system. I tried to copy a single FLAC file to the /data/INTERNAL directory. Checked permissions as well. Not sure whats going on. Any thoughts ?