OK, so they need to update their algorithm for the case that the above behavior would leave someone above the reserve level at the end of Peak. As then they shouldn't hesitate to also discharge during Peak before the VPP as normal. As the maximum discharge during the VPP is entirely known ahead of time.
Bascially, VPP should set a "VPP reserve" equal to the normal reserve plus the VPP maximum discharge amount. And then prioritize charging the PWs to that VPP reserve level. Then if there's any capacity left above VPP reserve, behave as normal before the VPP event, with VPP reserve instead of normal reserve.
Cheers, Wayne