This is problematic for a number of reasons. Not only do CD-Rs tend to have limited lifespans but there are some 3DOs that do not read them. Meaning that Limited Run is shipping games that they know, or should know, that some of their customers won't be able to use, without any kind of warning.
This seems...incredibly stupid. When you're selling a reproduction version of Plumbers Don't Wear Ties you're doing so knowing that the people who buy it will all be hardcore collectors either of 3DO games, oddities, or Limited Run releases. Those groups are all among the most pernickety of game buyers, the types of people who are still outraged that games no longer come with manuals and consider Day 1 patches to be personal affronts. To think that you could ship a game on a CD-R, especially for a system that struggles with them, is the height of arrogance. Maybe they thought their buyers don't play the games and just use them as display pieces. Maybe they just don't care. Regardless, it's a terrible look for a company that has a mixed reputation at the best of times (with incredibly late delivery of products and their entire business model seemingly based on FOMO) and really makes the whole licensed reproduction market look even sketchier. I am on record as being somewhat confused by this market, but even if I don't personally understand it people should still be getting what they paid for.
Just an awful, baffling, decision if true, and a demonstration of a company that absolutely does not understand its customer base.
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