@mitu
Ah thank you!
Sorry about all the confusion

The answer was simple, and found in your documents.
https://retropie.org.uk/docs/PC-Engine/

*PC Engine CD

It is important that the image file (usually .bin) and the CUE file (.cue) match.

CUE files are just text files containing a description of the CD. If you have files named like:

Akumajou Dracula X.bin
Akumajou Dracula X.cue

then ensure the first line of the CUE file contains:

FILE "Akumajou Dracula X.bin" BINARY

Any of the following are wrong and will not work:

extension has incorrect case

FILE "Akumajou Dracula X.BIN" BINARY

file name has incorrect case

FILE "AKUMAJOU DRACULA X.bin" BINARY

does not match the actual file name

FILE "Akumajou_Dracula_X_-Chi_no_Rinne(NTSC-J)_[KMCD3005].bin" BINARY*

@mitu Watch at around 1:43 and see what the floating muscle guy does when you shoot.

Here is a video I just recorded on my phone of what it does in RetroPie: