Found this response from Sony Creative Software for similar problem a few years ago.
In Sony Vegas, Navigate to Options - Preferences - CD Settings and select the option for Skip Drive Database, Auto-detect drive capabilities. Click Apply then OK. Close Vegas. Restart your system. Open Vegas again.
Randy, I'm curious about this too. I had to replace my C drive because it died and decided to upgrade to Windows 10 at the same time. I tried my CD drive about a week ago and it behaved just like yours :(
Sure hope someone has a solution for us.
I too have found I have this issue today. Used to work, but PC crashed late 2019 , and had to re-install every thing. I am sure it worked before, will not grab any audio tracks either. Will see the Drive as a DVD unit but not as a CD drive, odd. This is with VP 12 & 16