Don’t know if you already answered this yourself, but I had the same problem. I couldn’t get it working myself. What eventually worked was installing “Daemon Tools Lite” (for ARM), specifically the ARM based version, not the normal one. Honestly, I don’t understand what the problem is, but I can only assume that it’s somehow a problem with WinCDEmu not being up to date with.
If anyone knows how to fix it though, please let me know.