You version of RetroPie is old and the PS1 emulator doesn't support .chd files. You should install the latest version (from https://retropie.org.uk/download) to have .chd support or you can also copy the games in a format understood by your version (.iso or .cue/.bin disc images).

You could move the save file to your PC, go passed the broken area and then put the save back on the Pi.