When vlc is launched from the system menu with no video, its window occupies the full screen width and can't be resized horizontally: no grips appear, not even when the window is moved sideways to expose a side border. Grips appear for the top and bottom borders. When it's launched by association by double-clicking a video, likewise: regardless of the dimensions of the video, vlc centers it in a full-width window that can't be horizontally resized, and has black empty space in the client area symmetrically on both sides of the video.
A specific case: a video I just recoded with Handbrake, where mktoolnix reports
Pixel width 1280
Pixel height 720
Display width 957
Display height 400
"Resize interface to video size" is set.
VLC 3.0.17.4 on Linux Manjaro, kernel 5.15.78-1, KDE Plasma 5.26.3, KDE Frameworks 5.99.0, QT 5.15.7