Since there was no US release for Shao I took a look at an emulation of the European version. I can confirm that it is not used in the options menu as said menu features no music. I don't recall this song playing anywhere in the original Dreamcast version of the game so my best guess is that's it's either used in the Museum or Trial modes, or alternatively it might just be an unused track like you mentioned. Unfortunately, I couldn't find any save data of the game online so I'll have to play through it all myself in order to unlock the two aforementioned modes. I'll let you know if I come across it or not once I finish.
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