the VE connection to the "instrument" slot of a software instrument track in Logic, as opposed to running the standalone version.
For maximum clarity, VE is a multimbral instrument as a plugin, to any DAW host. The audio comes back as instrument channels, that is how the DAW relates to it.
However if you ever do VE Pro as audio input, it is now an external device and printing its result offline doesn't happen, it's realtime or nothing.
Standalone, that is something other than a plugin and it does not use the LAN to talk to other modules. The model for 'standalone' is really Gigastudio which got MIDI into it from, and audio back out of it to, the sequencer by external means. Cf., Kontakt used as a live instrument connected to controllers and audio out to amplifiers. I don't know why someone would connect a DAW to a standalone VE, don't need to know, don't care.