Yes, Changing disks is done via libretro through the "disk control interface". Unfortunately it hasn't been implemented in Kodi yet. Mostly because I haven't gotten through any entire discs yet
You can see the missing implementation here: https://github.com/kodi-game/game…onment.cpp#L209
This is probably an easy feature to implement. I'll need an MGS savestate or SRAM save. Let's move feature development to your issue at https://github.com/kodi-game/game…armed/issues/28, where we can upload saves.