Setting up VLC is indeed a bit tricky. Here are the steps I just tried with my wyze cam:
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Tap Media → Stream → Network and provide your wyze rtsp link
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Next and select “HTTP” in the New destination dropdown, and "Add
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Select the port you want and add
/cam.mpjpeg
in path. By adding .mpjpeg extension it will change how VLC defines its content type, and you can verify the content-type in the browser’s developer tool
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Next, and create a new profile. Use “MJPEG” in encapsulation, and “M-JPEG” in Video codec
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Next and stream.
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Create a media resource in SharpTools using the HTTP link defined above. Ex:
http://192.168.3.35:8081/cam.mpjpeg