ACO is Photoshop's older binary color palette format (predates ASE). Two versions exist: v1 (color values only) and v2 (adds names). Most contemporary Photoshop users have moved to ASE for cross-Adobe-app compatibility, but ACO remains the format you get when Photoshop's swatch panel exports.
How to open
Photoshop natively. Krita, GIMP (with plugin), Affinity Photo. Convert to ASE for Illustrator/InDesign use.