Ahhh, welcome to the world of ISO images and Virtual CD Drives! Likely there is third party software installed or another setup that has added a "Virtual CD Drive" that you can load ISO images (copies of CD software) onto and it works like a CD. You load the ISO into the drive (drag the image ontop of the application or open it inside of the application) and the application runs/installs.
You probably just need to uninstall the software on your Surface that creates the virtual cd drive.