Can WDC Option 1 be used on a CS Project?

It depends on how you represent your project at all other credits. If it's all consistently a C&S project, so it would be strange only for this credit to present it as a WDC building. In my experience such discrepancy is always a red flag for reviewers.  If for all other credits you treat your project as a WDC - it's ok.   

There was an Aug 9 2021 post (Core & Shell” version of the “LEED BD+C: Warehouses and Distribution Centers | LEEDuser (buildinggreen.com) in which @Michelle Rosenberger described using LEED Warehouse credits as alternative compliance paths for compatible CS credits. 

Deborah, thank you for the link - very helpfull.  As I can see  Michelle says that "So we gained no advantage as a CS project pursuing that program with the exception of a few differences most notably the Surrounding Density credit". So it possible if you are straight and no gerrymindering by the project classification and recieved such permition form GBCI. Laura - make your explanation for GBCI for such exemption using an WDC Option 1 in LTc4 showing that surrounding for the project is regular for warehouses / industrial neighborhood and it's logical to use such option specific for your project.