How is the default video player in Windows 10 achieving the low CPU utilization while playing FHD videos
Quite possible that the Windows player can make use of some HW acceleration the others can not / are not using. 

Check this how to enable HW video decoding on VLC: 


https://wiki.videolan.org/VLC_GPU_Decoding
https://superuser.com/q/128478/228841


If you are using VLC 2.2.2 check this
https://forum.videolan.org/viewtopic.php?t=130590

UPDATE from the author of the question:
Adding screenshot from VLC v. 2.2.1 to compliment this answer.

VLC 2.2.1 with Hardware Acceleration enabled.