It's strange you get hangs installing stuff at the copying stage. Wonder if there are problems with your file system. Usual fix is to run chkdsk c: /f:3. Unluckily you can't do it on a live system, usual is to boot to a maintenance partition to do it.
How big is your C: partition?
Coral 7 likely wouldn't work on WinOS2 due to using Win32s. The problem with Win32s is back in the day when IBM and MS were competing, MS tried its hardest to break WinOS2 and eventually succeeded. Win32s were/are a subset of Win32, used on NT and Win95+. There were various releases from MS, they'd break WinOS2, IBM would fix things, repeat. The last version, Win32s 1.30 hard coded some DLLs to load in high memory above 1GB, which was unreachable by OS/2 at the time and that broke things permanently. It is possible to have a hybrid Win32s of 1.25 and 1.30 and many 32bit Windows programs would run but once into the Win9x era it became harder and not possible to work around some of this stuff. Even the installers often depended on 32 bit to install 16 bit. There were workarounds but got harder and harder. Lots of hatred at MS from that.
Yes, also had (actually just looked at the CD) WordPerfect 8 for Linux. Actually both versions, the Deb which at the time installed fine on Debian based systems and the full version. I also used Corel Linux for a while. It was a good distribution at the time.
Actually tried to install it (the full version) on Linux Mint but I couldn't meet the simple dependencies, libc5 and xlib5, the debs weren't to be found and I didn't put much effort in trying to find them. Perhaps the debs in the Coral Linux would have worked but I seem to have lost the CD.