I know nothing about VLC other than knowing it plays videos, among other possible things. I was hoping that it has something similar to MPlayerControl that I could load at runtime on my main form.
Yes you can. VLC media player includes the libVLC library (a .SO or .DLL file). In fact the desktop VLC media player itself is simply a GUI front-end for the libVLC library. A much more complete front-end that the screenshot I posted

, but nevertheless the same in principal. With the code included in FPC, you should be able to create multiple instances and tell them which canvases in the GUI to use for the display output. I've never had such a need, but technically I can't see any issues doing that.
As for your comment about an updated Lazarus - I don't know why that would be required. Like I said, the code was donated to FPC and Lazarus back in 2012, so any Lazarus version since then should work.