This was featured on the T-3 2-Disc set.
I personally didn't see this as something Terminator needed, since watching a seen that is so corny and aimed too much at comedy that it detracts a lot from the franchise as a whole. Do I honestly want to watch the first Terminator again and think that the walking, cold blooded killing machine was modeled after a guy named Candy? Not my forte.
Skynet built a machine from scratch, and when it put skin over it, it looks like Arnold.
Still, if you want to take anything out of this, it does help to explain that big plot hole on how the Terminator, John and Catherine entered that military base all on their own. They thought the Terminator was Candy.