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Thanks for posting.
Is there any chance you could send me your InDesign file to take a look and see what the issue is?
Meanwhile, it’s important to understand that the option “As reported by InDesign’s own vertical justification” does not mean that you are using ID’s vertical justification! It just means that V-Justify is getting InDesign to “report” what it thinks is the bottom of the text frame/column. V-Justify then uses its own, improved logic, to justify the page.
In fact, this option is identical to the way things were in version 1.5.1 (the demo you tried). So I would definitely recommend using the “As reported…” option, as that is the same as the demo.
I would still like to take a look at your file to see why the other option isn’t working. (My guess is that it’s to do with the text-frame inset that seems to be applied, based on your screenshot. I would guess that if you remove that inset everything should work properly. But if I could have the file I could confirm the issue in your case.)
Hope that helps!