You sent the supporting documentation to VT proving that you are the legal owner of the vehicle (and you must be! You can't do this to get a title for a stolen vehicle).
VT allows out of state residents to register a vehicle in VT.
Your vehicle is not issued a title in VT because of their requirements of age or displacement.
VT issues you a transferable registration for the vehicle in place of a title and mails it to you in TX where the vehicle is and you reside (perfectly normal in their eyes and not an oversight).
Because the vehicle has a VT transferable registration which acts as proof of ownership for your vehicle according to VT law due to the age and/or displacement, TX will and must accept it and issue an equal proof of ownership. In TX that may be a title. TX can't tell you legal proof of ownership issued by the state of VT does not constitute legal proof of ownership in TX.
Conversely, If you move to VT and hand them a TX title for your scoot, they will not issue you a VT title; they'll give you a transferable registration, because titles don't get issued for your scoot in VT because of the age and/or displacement.
It's weird, tricky, and doesn't make sense, just like every state's DMV or MVC.
"If what you are doing isn't working, don't try harder, try different."
"Today I'm younger than I'm ever going to be, and I intend to act like it"