I have experienced nearly every sort of VLC failure imaginable as I’ve found VLC to be an unreliable mess when it comes to running as a transcode server. I also have other systems feeding from this camera, so I’m doing more than transcoding for SmartTiles (specifically, I have it creating an HLS stream that can be consumed by Roku.) I wound up writing an AutoIt script to wrangle VLC into handling errors but it’s highly customized to my environment and I’m not at all confident that it would be helpful to anyone.
Still, if it would help provide a starting point for your own efforts I’ve posted a sanitized version here.
No warranty is expressed or implied.