It's not a feature that you enable with a button and it's good to go. It's basically giving up control of your own app, even for people getting this app from non-Google app stores.
You need to give your signing key to Google and accept that Google employees (or any government asking Google nicely) can release updates to your own apps without going through you, and the user phones will accept those updates as being from the original developer because the signatures match.
With an update installed with matching signatures, the system doesn't wipe existing data from the storage and the fake update can read all of it. As a user of VLC I would not want them to use app signing keys that Google has access to.