It works fine.
Fly in NAV mode with a crosswind. Cage the VV. You'll see pitch ladder and a solid VV align to the centre of the hud, and a ghost VV off to one side. The ghost VV is corrected for wind, the solid one is not.
Kick the rudder, both will now shift left/right, indicating sideslip.
If you fly in AA mode, the VV is always caged, in AG mode it's always uncaged.