I think although he is a VCD this Yoda was really made to be a part of the RAH set.
It's in scale (more or less) with Jedi Luke, the packaging is similar in style to the RAH figures rather than the packaging for other VCD's which are different and he's not super deformed.
He's made for the RAH set not the VCD set, making him a VCD was just a way to get around the problem with his body type.