If you are playing your own burned CD/DVD's try the discs on another known working computer - especially one with VLC if possible. If the disc is playable using other devices and applications that would also help narrow down the possible problems.
Verify that the disc is indeed readable and playable.
If so, then proceed with:
1) Verifying that your optical drive is correctly configured for your system: e.g., driver letter assignment
2) Reinstalling the optical drive's drivers. (Download from the drive manufacturer's website.)
3) Reinstalling VLC.
May well be that a Windows Update created the problem either via corrupted software, buggy software, or just by making some configuration change to your system.
Objective is to methodically narrow down the problem to one specific source albeit configuration, software, or hardware.
Could also be that some future "update" will quietly fix the problem....