We're getting wires crossed.
ATRAC3 was used to fit vastly more audio on an MD than recording lossless PCM or original ATRAC. This effectively turned a Minidisc player into an MP3 player with removable storage.
If you wanted to do this you had to connect USB (before USB 2.0, mark you), and you had to use Sony's ATRAC3 format as well as their slow, shitty and generally unpleasant software.*
If you were hooked up to the optical in, you could only record in realtime but the quality was much better.
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jonbob loves you, Sun 21 Feb 2021, 1:00,
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