For future reference I was able to get this to work.
The problem was that MARS was not able to assign the iSCSI volume a drive letter because it was read-only (See screenshot of the logs above).
You could also not assign a drive letter manually using disk management (option is greyed out), but I was able to use disk part from the command line to select the disk and volume and assign it a drive letter.
- Open a command prompt.
- Type in diskpart
- Type list disk to see a list of disks.
- Type select disk # (where # is the disk you want).
- Type list volume to see partitions.
- Type select volume # (where # is the volume you want).
- Type assign letter=x (where x is the drive letter).
As soon as I did that the restore continued and I was able to browse the files/folders to restore.