Yes, as I mentioned it will work with BSP's subtitle renderer. It will cause that error report to come up when playing the file only with VSFilter. However if you click Continue, you can still play the file for some reason without issues. I am not sure why BSP comes up with an error. VSFilter is a compliant DShow filter and has been used for many years (under the name VobSub) during the days when BSP was under very early development. It is still used much nowadays in other Players which do not have a subtitle renderer. There should be no errors, but there are :(

Just to re-iterate, from a fresh install of BSP on default options the only things to change are:
Filter Management
'Allow intermediate filters' checked
'Enable advanced graph building' checked

Subtitles
'Subtitles disabled' checked
'Enable VobSub support' _un_checked
'Load subtitles into memory' _un_checked