This problem persists across many versions of VLC, multiple versions of iOS, and two cars--each having a different protocol (USB/Bluetooth). The behavior is the same. I don't think there's a reason that the car is incapable of displaying text given to it by the phone's operating system; Other apps like audible send their info correctly on every track change, automatic or manual changes.
Here is the behavior:
Tapping on a track of my phone screen manually, always works, updating the car's track info.
When 'next track' button is pressed, either on phone screen or using car controls; the audio track successfully switches and the screen of the car indicates a new track with a pop-up, but the screen of the car still reads the same data as before, same title/artist/same filename(if no metadata was present on last track). It even keeps its place in time of the track(my car shows track time)--example: if I press next at 04:22 of 6:28, it will play the next track starting at 4:23 of 6:28(next track is not 6:28 long), with the previous data showing and keeps rolling.
If I press back to restart the current track, it now indicates the correct track info correctly, just as if I had manually selected it/tapped on the track.
If I press back again immediately to switch to a previous track, there is no update on track info--the same error as if I had pressed 'next track' button.
If track changes automatically after one track runs out, and another begins, the same error occurs, as if I had pressed 'next track'.
All this behavior is the same with shuffle on or off.
Version 3.3.12 of VLC
(app store indicates my version as up-to-date)