disc now show they are a terminal file format they no longer a document file so WC is not reading them
Now that you have your site running again maybe you can work on getting the WC data files recovered. I wouldn't worry about WC reading the files on that optical disk. But there are probably apps or even web sites that could read the bits, regardless of the suffix, and convert them to other formats.
If ".terminal" is file name suffix, things don't look too hopeful:
Settings file created by Apple Terminal;... saves window appearance settings such as the font, text and background colors, window size, and shell startup commands
I don't think any of that would be particularly useful to WC.
Can you post the actual file name with the suffix showing? You may not have that enabled in:
Finder prefs->
Advanced tab->"Show all filename extensions" Checkbox.