Very odd problem
your problem is either or both of the following, the resistor on the key is worn or dirty and not making good contact, or the receiver inside the steering column is dirty or worn. Try using some fine emery paper and cleaning the metal contact on the resistor on your key, or use a spare key if you have it. and if you have crap inside the ignition switch you might try spraying some electronic cleaner or compressed air in there, it may help but i wouldn't get your hopes up.
there might be a way to disable the VATS, try posting or searching in the computer/tuning forum. And just try a search in here on VATS

