I was able to use a couple of terminal workarounds to open the Apple Silicon VLC Nightlies. The first command will fix the move to trash issue as it bypasses a gatekeeper check that's causing the error. The 2nd commands overcomes the lack of code signing for the Nightlies. Once done, VLC will open like a charm. You may have to preface the first command with sudo.
First Terminal Command: xattr -cr /Applications/VLC.app
Second Terminal Command: codesign --force --deep --sign - /Applications/VLC.app