Hello Tele, welcome. I went through a dickens of a time with my 91 C4, I am not sure if GM upgraded the VATS in the C5 or not.
In short I tried a key bypass with a switch from Ecklers. It worked for a while then I just got into a situation where you could not trust the car to start. It was the VATS because on turning the key I had no fuel pump or starter. I replaced the ignition tumbler, and that worked for a while, but the problem returned. I finally installed a "New Rockies" Vats bypass. It wasn't cheap and took about a day to install. Problem solved.