It works, but there will be a lot of noise in the picture.
The easy fix is to remove one SMD capacitor, circled in red.
A better fix would be to replace this capacitor with an electrolytic of 22uF to 47uF.
Same LDO oscillation problem, but here it is limited to setups that use a power supply of > 5.0V.
I get wild oscillation at 7.6V from a common PSOne supply.
The same C11 removal fix works here as well.
These variants also use a special video driver for the VGA output.
The driver IC has a charge pump that it uses to generate negative voltage.
This would be a useful feature for driving YPbPr signals, but here they just seem to dump the current onto the ground plane (from what I can tell at least).
That charge pump is generating noise however, and since no ferrite bead is used at location R58, a noise pattern easily develops in the image.
With a bead installed and some extra SMD capacitors, the image is fine again.