Gamecube works only with FAT32, not NTFS.
it works also with exFAT, but no other homebrew will work, so it's recommended to use FAT32.
For wii, there is a way to read .iso directly, but you need NTFS as all ISO are 4.7GB and FAT32 can't have more than 4GB file.
so your game will be 4.7, even if mario takes only 400MB...
And there is a location and filename requirement, you can't just put your ISO where you want expecting the program to read in your mind.
why lose space on your drive? and why use NTFS if you can't use it for gamecube, while FAT32 works for both.
for gamecube, you need the iso, do not try to convert to .wbfs files.
Also, "this is how it works" because this is how it was developped.
it's not going against you. You have to learn the requirement and follow them. you can't just think "I would prefer putting ISO on LAN, why it's not working like that?" or "I would like gamecube with NTFS ! why it's not compatible ?", well that's because of lot of different causes and how things are designed. you need to learn and comply, doing things hoping it works your way then it will not work well.
I'm still not sure what your problem was when you said "it's not recognized".
it's just because you placed games on random location with random file names? (probably)