I can't comment on this particular project, but I know that similar projects have allowed adding images to the unused portions of the disc. A given region of the disc cannot be both image and data, but the disc can contain an inner region of data and imagery in the outer unused portion.

DVD codec probably allows for a certain amount of error correction to recover from scratches, images can still look readable to humans despite a bit of noise, I wonder if there’s enough overlap there to meet in the middle and have an image that also stores data