For both Daytona USA and Sega Rally (released around the same time but produced by SEGA), the arcade machines had sort of a synthesizer soundtrack with no CD-ROM involved. Only the home ports of those games for the Sega Saturn had CD-quality soundtrack. They remade all the music and you really can tell the difference; they definitely didn't just "record an arcade machine" and put it as CD tracks.
However, for Ridge Racer (which was made by Namco and came out roughly at the same time as Daytona USA in ~1993), both the arcade and PlayStation versions appear to have the same exact soundtrack. I can't really tell whether it sounds "synthetic" or "CD-ish", but either way it's curious to me. Does this mean that they just "recorded the arcade machine" for the PlayStation port's soundtrack, or does the arcade machine actually contain a CD-ROM drive inside of it which plays the music?
If so, it seems to me like it would wear out quickly if in constant use. I'm not even sure if any arcade machine ever used a CD for the music or for any other purpose.