[TimeZone]

I find it strange that TMM is still supporting the extrafanart folder as I remember having this conversation with the developers who stated they will drop support for it. You should raise it in their forum.

SOLVED: this might help someone having the same issue
Thank you @Karellen, when you said you had a conversation with them, I updated to TMM v4 and indeed I can confirm that the option is available as explained by @bobrap. But, v4 did not help my situation. Even after changing the settings it will not rename or move fanarts already saved in the extrafanart folder, it only works for the new artworks it downloads. That is ok for future movies.
For existing movies, I had to download a much older TMM version, long before the extrafanart folder saga began. I dowloaded version 2.8.2 which can be found here in filehorse.com. This version removed the extrafanart folder altogether and moved the fanarts to the movie folder. Problem Solved. A lot has changed since this version including API updates and I wouldn't recommend using it for scrapping, only for renaming existing movies with local NFO files. I will see about requesting the TMM devs to enable v4 to rename existing extrafanart folder.

@Karellen thank you for the insight on the MSIF.