@mitu Glad to know I'm not the only one having the issue with Arcade's Greatest Hits - The Atari Collection 1. The fact that both of these games play properly on ePSXe, using the same BIOS (SCPH1001.bin) and ROM files, leads me to believe that it's an issue with lr-pcsx-rearmed. I suppose, worst case scenario, I could try The Atari Collection 1 on SNES and Hot Wheels Turbo Racing on N64 if myself or anyone else can't figure out the issue on PSX.
Related links: Hot Wheels Turbo Racing psx black screen
PS1 games that have bugs in retropie