I'm not sure this will cause problems with Keyboard Maestro, but it might, so I at least wanted to raise the issue in order to make people aware of the potential for problems.
VLC just updated to version 3.0.12. The good news is that is version brings native VLC support (although after you install 3.0.12 on an M1 Mac, you have to do "Check for Updates" again to get the actual Apple Silicon version, for reasons I do not fully understand).
The potentially bad news is that the menu item next to the Menu has changed from 'VLC' to 'VLC media player'.
I have no idea why they did this. There might be an explanation somewhere, I haven't had a chance to look. (if they were going to change it, I would have suggested VLC Media Player not VLC media player but does anyone using VLC really not know that VLC is a media player app? So… WHY?)
Anyway…
The app itself is still called VLC.app and the bundle ID is still org.videolan.vlc so this should only cause a problem if you had a Keyboard Maestro macro that looked for the VLC menu item. It will now need to look for VLC media player.
Old Menu Name
taken on my Mac mini running Mojave that has not yet been updated to the new VLC
New Menu Name
taken on my M1 MacBook Air running Big Sur and new VLC