https://bugs.winehq.org/show_bug.cgi?id=56114
--- Comment #6 from Alexandre Julliard julliard@winehq.org --- (In reply to Olivier F. R. Dierick from comment #5)
So, please, clarify: Does the recursion issue that is prevented by the 'feature' only affects the Unix browser dialog itself, or does it potentially affects the use of the WINEPREFIX as the drive path?
It's only the browser that prevents entering WINEPREFIX, for unrelated reasons. It's not a problem to put the mount point inside the prefix if you want to.
It's also not worth investing efforts into improving this, because people shouldn't need to edit drives manually, or put mount points in unusual places. The right way is to use the appropriate tool in the Linux desktop (e.g. gnome-disk-image-mounter) to mount the iso and let Wine create the drives automatically.