No, VBAM just ignores the GBC BIOS. It will yell at you telling you the BIOS file size is wrong, then proceed to boot the DMG or GBC game as if the BIOS never existed at all. Obviously GBC games play fine, but DMG games don't get the colorized palettes.
GB Enhanced can boot from the GBC BIOS and then into a game, and the colorized palettes are all there. It's easy enough to HLE the palettes, which is what libretro does irrc.
GB Enhanced can boot from the GBC BIOS and then into a game, and the colorized palettes are all there. It's easy enough to HLE the palettes, which is what libretro does irrc.