The problem is not with the state actually prosrcuting all, or even many vpn "offences". The problem is that the legislation gives states another powerful tool to prosecute people they find annoying but cannot easily punish for clearly breaking other laws.

Exactly, the effective purpose of overcriminalization is to provide a tool for selective use against “bad” people (those who get in the way). This includes recidivist criminals—though often only those who do damage to someone important—but it also includes counter-establishment activists, influencers, and supporters.