Checked your image,
spamalot.
1. It's real multi-session disc. One data track, and 15 music tracks. Thank you!
2. It really doesn't play in the emulated Win3.1. It says "driver MCI is missing", and I fear it means that this assembly simply doesn't support CD-audio playing. :|
3. I tried direct mounting of CUE/BIN (that I made with ISO Buster), and yes, it doesn't work too. I would be surprised, actually, if it would.
So... for working sound, you need to do something with Windows. CD itself is perfect.
---addition---
After some research I found that CD-audio driver (that is MCICDA.DRV) definitely missing in my Win3.1. Also, I found that lzexpand.dll (that must install everything) is broken - instead expanding driver from my Win3.1 floppies, it simply copied it. But... even installing correct lzexpand, and adding MCICDA.DRV didn't solve the problem - game still says about wrong device. :/ Maybe I need something else, but I have no idea what.
I think, I need more consulting from the real Win3.1 experts.