The file should be a standard .iso file. Be cautious of .exe files, as they can contain malware.
Acquiring a digital ISO file of CodeBreaker v10.1 offers significant advantages over using the original physical media.
However, I can offer a few helpful alternatives:
To run the ISO on physical hardware, your console must be modified to read backup media.
If you own a softmodded PS2 (using FreeMcBoot), you can launch the ISO from a USB drive, MX4SIO, or an internal Hard Disk Drive (HDD) using OPL (Open PS2 Loader).
Using CodeBreaker on PCSX2 is simpler than on real hardware, as it can work directly with ISO files.