The capture seems to work, I see a correct portion of the desktop into the VLC server:
Wireshark running in promiscuous mode on the client shows that nothing is sent by the server (filter is ip.src==192.168.1.31 && udp.port==2416).
Here are my batch files:
Server.bat
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vlc -vvv screen:// :screen-fps=25 :screen-top=12 :screen-left=4 :screen-width=320 :screen-height=200
--sout=#transcode{acodec=none}:duplicate{dst=std{access=udp{ttl=1},dst=192.168.1.7:2416},dst=display} --sout-keep
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vlc udp://:2416