Ever since V3 of VLC, this no longer works.
Currently VLC will show on whatever display you request it on. In other words, if you want it to show it on Display 2, have an instance of File Explorer on Display 2, and start VLC by selecting the relevant media or playlist there and size the output as desired. You can then move the control panel back to Display 1 and control it from there.
The object is to use VLC with the output going to the projector, using extended desktop:
On VLC, under Tools/ Preferences (Ctrl P):
Select Show settings All
deselect Show media title on video
Something that I have had to do lately (otherwise VLC crashes):
select the arrow at “Output modules” to expand the list
deselect “Use hardware…” and “Use triple buffering…”
select Play and stop
Save and go back to Show settings Simple
Under Interface, deselect “Integrate video in interface”
deselect window decorations
select DirectX output
select Display device “\.DISPLAY2
Save and restart VLC
If the image doesn’t fit the screen properly, press F (Fullscreen) a couple of times. If someone knows the solution to this problem, please let me know!
If you end up with a pink screen , it may be necessary to go to Video, and switch off “Accelerated video output (Overlay)”