No, it didn't. The "windows CE compatibility" was nothing but a set of libraries that was included in this SDK:
Like less than a handful of games total in the entire library used this. Sega actually sought out microsoft to put the "compatible with Windows CE" logo on the DC for marketing reasons. The Dreamcast was in no way compatible with Windows CE, nor did it run anything close to Windows CE. There is nothing microsoft inside the dreamcast at all.
Source: I have written the literal book on Dreamcast programming.
Anywho:
Squid installed, about to play around with this.