I've encountered the same problem.
I use Windows 64 bits and used the EXE file to update VLC.
After a few tests, I discovered that the files npvlc.dll and npvlc.dll.manifest were updated in this folder: C:\Program Files\VideoLAN\VLC
But not in this folder: C:\Program Files (x86)\VideoLAN\VLC
So I updated the files in this folder and now the error message is gone.
If required, you can extract the new DLL directly from the VLC ZIP file.
BTW, thanks to the VLC team, I've been using this free tool for years and it's my favorite for playing videos on my PC.
I'm frequently using it to learn how to play music scores using slow motion, I love the way it handles external subtitles, codecs, etc.