I don't know what the picture is showing. I don't know what VLC Player does as I don't use it.
You stated in your opening post there was interlacing left after the IVTC and that is simply not true. See if you like this any better, but since I don't understand your problem (except for some aliasing), I don't know if this helps.
QTGMC()
BlendBob()
TDecimate(Mode=1)
https://www.dropbox.com/s/zndxk804kh...Test2.mp4?dl=0