That's ok, since vlc tries a different number of display options and they're not available. Can you run
dpkg -l | grep vlc
and post the output ?

pi@retropie:~ $ dpkg -l | grep vlc
ii libvlc-bin:armhf 3.0.17.4-0+deb10u2+rpt1 armhf tools for VLC's base library
ii libvlc-dev:armhf 3.0.17.4-0+deb10u2+rpt1 armhf development files for libvlc
ii libvlc5:armhf 3.0.17.4-0+deb10u2+rpt1 armhf multimedia player and streamer library
ii libvlccore-dev:armhf 3.0.17.4-0+deb10u2+rpt1 armhf development files for libvlccore
ii libvlccore9:armhf 3.0.17.4-0+deb10u2+rpt1 armhf base library for VLC and its modules
ii vlc 3.0.17.4-0+deb10u2+rpt1 armhf multimedia player and streamer
ii vlc-bin 3.0.17.4-0+deb10u2+rpt1 armhf binaries from VLC
ii vlc-data 3.0.17.4-0+deb10u2+rpt1 all common data for VLC
ii vlc-plugin-base:armhf 3.0.17.4-0+deb10u2+rpt1 armhf multimedia player and streamer (base plugins)
ii vlc-plugin-qt:armhf 3.0.17.4-0+deb10u2+rpt1 armhf multimedia player and streamer (Qt plugin)
ii vlc-plugin-video-output:armhf 3.0.17.4-0+deb10u2+rpt1 armhf multimedia player and streamer (video output plugins)

Splashscreen for RetroPie