The rather shallow angle probably helps a lot. On top of that the camera probably has some form of auto white balance which will counteract the tint the CD will give to the image.
Note that the color of the reflection is not much different from a normal picture (visible at the bottom). For added difficulty I used an original PlayStation disc, that's dyed black: https://svkt.org/~simias/up/20200914-000836_psx-cd.jpeg
I think at such shallow angles it's the plastic surface that becomes reflective, not the metal layer with the pits and grooves. Hence the lack of diffraction (and hence why it works with my black PSX disc).
Everything reflects light, but not everything reflects it clear enough to read documents through. I haven't held a CD in ages, so it it's possible that folks don't remember exactly how reflective they are. ¯\_(ツ)_/¯
Here's a quick proof of concept using a random CD and my phone's camera: https://svkt.org/~simias/up/20200914-000627_psx-cd-reflectio...
Note that the color of the reflection is not much different from a normal picture (visible at the bottom). For added difficulty I used an original PlayStation disc, that's dyed black: https://svkt.org/~simias/up/20200914-000836_psx-cd.jpeg