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I don't even know how to explain this issue. I walked away from my computer the other day and when I came back it was snapping fine when I changed literally nothing. Now it won't snap nodes together once again.
VIDEO: https://youtu.be/3SlIFMm0-Fk
Hi. I fixed this by going into direct selection mode. When in direct selection mode, snapping to nodes works as expected. When you are in normal selection mode snapping doesn't work as expected. Thanks for the help!
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With nothing selected, you can access some Snap Options within the Properties panel.
You can also access the Snap options near the bottom of the View menu.
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It appears that you already have Snap to Point activated. Select the object to be moved with the Selection Tool. It's easier to see (but not necessary) what's happening if you go into Outline view (View menu > Outline) or CMD/CTRL + Y. Switch to Group Selection tool or Direct Selection Tool, click and hold on the selected point to be snapped, then drag it to the target point. CMD/CTRL + Y again to return to Preview.
Peter
 
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I can see you have snapping on by the magenta smart guides flashing as you move. Refining your technique should help:
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Hi. I fixed this by going into direct selection mode. When in direct selection mode, snapping to nodes works as expected. When you are in normal selection mode snapping doesn't work as expected. Thanks for the help!