Steve,
This is how I see your situation:
---> layout ---> SM ---> yard entry block ---> VM ---> yard tracks
VM never changes. It is set to a constant aspect. SM changes between Stop and NOT Stop based on the occupancy of "yard block". The SM aspect depends on the signal mast logic for the selected signal system.
Personally I would set VM to Stop and SM would be either Approach (yellow) or Stop (red). Clear (green) implies proceed at normal speed.
If my perspective is not correct, then we need more information.
Dave Sand