First understand that OBDII is a communication standard put in place mostly by CARB back in the mid 90's mostly for emissions testing.
https://www.geotab.com/blog/obd-ii/
Each vehicle manufacturer also has their own proprietary communication protocol as well. These allow them to monitor much more than just emissions related stuff.
VCDS is a tool that can read and access both OBDII and VW communication standards. Generic OBDII readers/scanners can only read the OBDII standard.
Your question should then be which is better, VCDS or a generic OBDII scanner/reader?
Of course VCDS is better than a generic scanner as it can read both standards and provide more information than the generic OBDII scanner can. VCDS can also let you enable some functions on the car that are not accessible with a generic OBDII scanner.
There are other scanners out there that read other manufacturers special codes as well. Cost is high for some of these too!