The GameCube version of Sonic CD (included in Sonic Gems Collection) does not have an accessible Debug Mode or object placement feature in the retail release.
If you need Debug Mode for Sonic CD, use the **2011 Remaster (Steam / Mobile / Console)**. It is the definitive version (widescreen, 60fps, Tails playable, debug tools). The GameCube Gems Collection version is a historical curiosity only.