Simple one wine does not play well with ISO files. When you say cdrom drive wine is expecting to talk to exactly that. Wine is not a cdrom emulator and mount loop back is also not a virtual cdrom drive. If application asks wine to do a direct cdrom request command that is exactly what wine does. Mounted loop back iso's don't answer that so program fails. Nothing wrong with wine. Its your setup that is wrong. There is a virtual cdrom drive for Linux. Windows virtual cdrom drives will not work.
