Video CDs Break Windows Explorer

There is an odd bug in Windows related to Video CDs . To reproduce it:

The typical outcome is that at some point the copying speed drops to zero and it stays there:

When that happens, Windows Explorer is in a "broken" state. You can close the copy window and eject the VCD and it might look like everything is fine, but there are problems. For example, new files and folders are not visible without manually refreshing the view, some parts of the Windows UI become glitchy and the Windows Explorer process can't be restarted.