A lot of these old systems are very fussy about what CDs they will work with and what they won't. I can't get my Beige G3 to read and boot from a MacOS 9 CD I burned on my G4 PowerBook, but it will read one on a different brand of CD burned by someone else. So, first thing to try is burning the install CD onto a different brand of blank, at the slowest possible speed.
Also, these systems were supplied with MacOS 7.5.1, and in the first instance, I'd be inclined to start with that, or perhaps 7.6.x (
https://macintoshgarden.org/apps/macintosh-mac-os-76 has universal installers) since is less complex and may be more readable.