Like anything OAuth2-related, it's frustratingly vague and jargony.

Verifiable credentials is a terrible name. We have had verifiable cryptographic credentials for more than 40 years.

What I want, is a practical protocol to prove to a third party

1. That I am a real person (e.g, has a unique credential issued by my government)

2. That I'm the only one currently "logged in" with them, with that credential.

3. Without the third party, (and with as few parties as mathematically possible) knowing which of the people with a credential issued by my government I am.

In short, to prove that I'm a real person, that I'm not running an army of sockpuppets, and yet preserve my privacy.