I have worked on several of those VRO systems and there is absolutely nothing wrong with them.
the biggest problems with VRO’s was owner neglect,ie,water in getting in the oil reservoir,debris,sand,mud,hoses swollen from age and leaking,clamps broken, you name it.
how did it get there?? with water it was usually because the drain plug was not pulled and the boat filled with water submerging the oil tank filling it through its vent hole,or the boat didnt have a bilge pump and it took on water from a heavy rain.
as you know water is heavier than oil so the oil floats on top of it and the water gets pumped into the engine instead of oil taking out the engine because water overs no lubricity what so ever.
the sand,mud,and debris is from pure lack of attention to detail when filling the reservoir.
about the only maintenance the VRO system needs is keep the oil as clean as possible,and every year or so check the vacuum lines and oil feed lines to see if they are in need of replacement,also check their retention clamps.
sensors on any brand of outboard can cause fits as every one knows,but quit ignoring it thinking every thing will be fine because you can see water coming out of the tell tale and the engine is smoking at idle.
take it to a brand specific dealer or reputable marine shop and have it checked out to see why an alarm is sounding,yes,senors fail and cause false alarms,and yes it will cost money to find out why and to fix it right,but that is a lot cheaper than toasting a several thousand dollar engine.
when buying one of these engines I tell people to take a flashlight and check the bottom of the gas tank,if it has a lot of junk in it,chances are the oil tank does also and to walk away from it as it has been neglected.
if you are convinced you need to tear out a working system to only back up to the stone age of mixing gas and oil,go ahead,its your time and your money,or buy a different brand of motor.
if you are not sure what you want to do with it,have it checked out as I stated earlier,the worst that could happen is you have to spend some money to bring it up to par.
dont mean to come across harsh,but you can look up anything on the net and find hundreds of bashings on anything because someones second cousins sisters boyfriend knew a guy that had an uncle who bought something that was a pos from the get go,but failed to mention that it came from a junkyard as it was worn out,but yet it was the manufacturers fault when it didnt function like new.
good luck with what ever you choose to do!! sheldon