[filesystems] What is the difference between VFAT and FAT32 file systems?

FAT32 along with FAT16 and FAT12 are File System Types, but vfat along with umsdos and msdos are drivers, used to mount the FAT file systems in Linux. The choosing of the driver determines how some of the features are applied to the file system, for example, systems mounted with msdos driver don't have long filenames (they are 8.3 format). vfat is the most common driver for mounting FAT32 file systems nowadays.

Source: this wikipedia article

Output of commands like df and lsblk indeed show vfat as the File System Type. But sudo file -sL /dev/<partition> shows FAT (32 bit) if a File System is FAT32.

You can confirm vfat is a module and not a File System Type by running modinfo vfat.