Yes, it's something of a meme but brought up a mystery that still gnaws at the back of my head sometimes.
All of the albums have been identified up until level 10:
Level 1: Neutral Milk Hotel - In the Aeroplane Over the Sea
_________King Crimson - In the Court of the Crimson King
Level 2: Captain Beefheart & His Magic Band - Trout Mask Replica
_________Swans - Soundtracks for the Blind
Level 3: Faust - Faust
_________Ground-Zero - 革命京劇 Revolutionary Pekinese Opera Ver.1.28
Level 4: Sunshine Has Blown - Sunshine Has Blown
_________AMM - AMMMusic
Level 5: Sachiko M / Toshimaru Nakamura / Otomo Yoshihide - Good Morning Good Night
_________Horațiu Rădulescu / Vincent Royer / Gérard Caussé - Intimate Rituals
Level 6: François Dufrêne - Oeuvre désintégrale
_________Arsène Souffriau - Expériences BIMES
Level 7: 鈴木マナブ [Manabu Suzuki] - Kantoku Collection
_________Ryu Hankil - Becoming Typewriter
Level 8: Mattin & Taku Unami - Distributing Vulnerability to the Affective Classes
_________Joseph Beuys - Ja Ja Ja Nee Nee Nee
Level 9: The Gerogerigegege - Art is Over
_________Burt Reynols Ensemble - Gordura Vegetal Hidrogenada
Level 10: Unknown
Levels 1-7 are mostly /mu/core, getting increasingly avant-garde and obscure.
Level 8 is bleeding edge avant-garde (1970 babbling sound poetry and an hour long recording of the artist crying.)
Level 9 is anti-releases (Art is Over is an squid tentacle in an otherwise empty cassette case, and Gordula Vegetal is an empty CD case containing a note saying "ESTE C.D. SE DESMATERIALIZÓ HACE 15 SEGUNDOS" [THIS CD WAS DEMATERIALIZED 15 SECONDS AGO.])
Level 10 is unidentified, and nobody on /mu/ could figure it out.
The first one seems to be an edited version of Улуғ Октябрнинг 60-Йиллигига = Великому Октябрю 60 Лет and might either represent that release itself or another, unknown release that used and modified the artwork. I suspect the latter, and think the album it represents is currently unidentified.
The second one has since been used by Liam Robinson's Satellite Tracks, but the image was circulating since at least a year before its release; I'm guessing Liam is a /mu/ user trying to capitalize off of the meme.
I thought I was onto something when I saw that it resembled the inner cassette art of Five Starcle Men's Sicicbral, but on second thought it's probably unrelated.
This screenshot was also circulating around /mu/, so it might be ปฏิภาณโวหารของไทย - ฝนตกหนักของเครื่องมือไม่ได้ทํา (via online OCR - "Thai rhetoric - The heavy rain of the tools did not do it.") I can't find any results or information on it, so it's likely Inspect Element.
/mu/ being /mu/ started rumors that they contain illegal content (claiming that the first one has an underage girl edited into the cover itself, and the second that it's a Thai art project combining interviews and reports with audio of illegal porn.) It's pretty clear to me that this is total bullshit, though; the ghost of Pseudoscorpion hung heavy over /mu/ in 2020 and everyone wanted to stir up that kind of controversy and drama again. It's just red herring after red herring, and if I thought there was any credibility to /mu/'s whisperings I wouldn't be posting about these in the first place.
Ultimately, the best explanation is probably posted on December 26th, 2020:
"the layer 10 releases are memes and i wouldnt get my hopes up of listening to them any time soon, my guess is they are releases that existed at one point but were never digitally archived and have been lost, or they do exist and are difficult to access because only one person living in a siberian shack or some shit has access to them."