Is it LEGAL????

I see you are a newbie.:)
There is no single answer to this.
There is no good answer to this.
Have you "removed" a VIN?
Most people don't know what the applicable law says.
Most people couldn't make sense of the law if they read it.
And that includes the bureaucrats.
Remember, there are both federal and state laws.
I'm betting other than the people reading this, most people don't care what you do with them as long as you don't commit .....gee I hate to throw that word around.......fraud.
If someone wants to make absolutes, that's fine.
I'm not a lawyer.
And that would not mean much even if I was one.