I wasn't in the engine bay when my Sister in laws Mk5 GTI died but they had the oil pressure light come on, then the car cut out and wouldn't start... AA guy said there was no oil on the dipstick at all, and towed them to VW. They had the car serviced religiously at VW but don't check anything on cars in between (sigh). VW paid for a new engine under warranty after she argued that there was no indication of a problem from any warning lights until just before the car cut out.
In VAS/VCDS errors are time and mileage stamped aren't they, perhaps VW took this into consideration to ensure they hadn't been driving with warning lights a blaze.