VNC Viewers can connect they are just limited to view only access on the login screen. If a user is already logged in the Viewers work mostly as normal.
I figured out the issue. The solution to getting a View Only lock screen when using a VNC Viewer to connect to Mac OSX Built-in VPN is to:
Go to Screen Sharing --> Computer settings and un-check the two boxes. THe first says Anyone may request permission to control this screen. The second says VNC viewers may control this screen with a password. Both of these must be unchecked. (the opposite of what you would expect.)
For security in the lower section set it to allow access for only the users you select.
In summary this must be a bug, because enabling the VNC Viewer setting is supposed to allow you to use VNC to connect to your MAc. In reality disabling these settings actually allows you to connect.