I will try to keep this response short(ish) as I have not really looked at it any more since previous post. Thank you both for the replies 
Doh! To be honest I kid of forgot those modules even existed! So no I have not tried them yet. Apparently I have already spent to much this week so will have to wait until next Thursday (30th) to try any new parts, so if all else fails I think that will be my next option.
Just one note that its kind of the other way around, Its not "trigger movement -----> play sound" but rather "play sound -----> read levels -----> sync movement". That way I can just create the sound files & not have to program animations for each file.
In a word "yes" I now have the audio working as needed........ however:
1: I still need to do work on the "control" side of it like work out how to start/stop sound playing, select file to play, work out when the file ends etc. I imagine that compared to the rest of it this should be relatively easy..... I just have not looked at it yet. Will probably be tonight's goal though.
2: Sound volume/quality. I'm pretty sure the issue is the MAX98357 DAC/Amp. I am using the same speaker as I had connected to the BT201 mp3 module, That had a good volume & quality was good enough for what I need. However using that speaker on the MAX98357 gives poor results...... The volume is low & when it is at maximum volume I am getting bad distortion. I have looked into the bluetooth speaker I use at festivals which gives plenty of volume at good quality as a comparison & that turns out to be a 3w 45mm driver combination. Having a look online I have seen a few people complain about the quality of sound from the MAX98357 but have had better luck with a CS4344 & external amplifier.
The four M's:
Mind: Has not changed since previous post.
Mechanical: The parrot is currently in parts waiting for me to solder some new wires in place. I have also been removing parts I will not use to cut down on weight & add valuable internal space. As previously mentioned the internal mechanism of the head/eye movement means I can not easily convert it to servo motors instead, but I have cleared enough space I may be able to add a servo to add crest style feathers such as in the following video: Headphone warning for loud bird sounds which is an afterthought, but would be easy enough to implement if the servo fits.
Music: As stated, this is moving along slowly but in a positive direction. Mainly need to sort out the "control" code & the quality/volume issues.
Merge: Still a long way off
Although not strictly to do with programming, I thought I would end this post by sharing some "inspiration" of where I want the aesthetics to go with this project.
These 3 videos as far as I can tell all use the original built in controller / electronics, but the aesthetic is exactly what I am after & made me order this toy in the first place.
Todays final thoughts? Apparently even when I say I am going to give a short response...... I always fail at that too!!!