Nothing unusual about your prefs file. Apparently you use the disk images on a separate (external) volume/disk. I suppose that the "My Passport" volume is on the WD drive.
I understand that a VCD partition is mounted as a CD volume. That's probably why it is mounted in SheepShaver. If the issue is very annoying and you do not need CD-ROMs, you can try if disabling CD-ROM support in preferences (nocdrom true
in the prefs file) prevents the VCD volume from being mounted in SheepShaver.
I suppose you need the protection. Otherwise you could disable the VCD partition using the VCD Manager: http://www.wdc.com/wdproducts/updates/? ... ilitiesmac
Anyway, thanks for reporting this rare issue that may be encountered by users who use an external drive that uses a VCD partition with protection software.
BTW: Isn't the VCD volume write protected? It is not something to try, but I think that if one would try to initialize the VCD volume in SheepShaver, initializing will simply fail.