Geodude365 You've given VLC the special app permission to manage all files and don't remember it. This is not any kind of vulnerability or issue with Storage scopes.
Go to Settings > Apps > Special app access > All files access. If my guess is correct, you'll see VLC as "allowed" there. Deny it that permission. Then, launch VLC again. It'll prompt you for that special app permission again, but you'll see the option to configure storage scopes instead. Feel free to do so.
VLC should not be requesting that special permission, it feels unneeded.