Getting a lost title

What VT is doing is not illegal as VT does not issue you a title, just a registration. They do ensure the vehicle vin has not been reported stolen. What might happen is states that currently only require another state registrstion ( in this case VT) to issue you a title could require much more than that to get a title. I would imagine some already do that. Vermont's biggest industry is tourism, and there are many people that are residents of other states with 2nd (and 3rd ,4th, and so on) houses here. I would guess that is part of this.
The process documented in Uncle Tony's video is not difficult for anyone to do themselves; no need to hire a company for that piece.