I figured out the problem. I had created a DDL from PostgreSQL database and it contained the pg_catalog which had a function:
create function pg_catalog.cursor_to_xml(count integer, cursor refcursor, nulls boolean, tableforest boolean, targetns text) returns xml
strict
language internal
as $$
begin
– missing source code
end;
$$;
VP said that it encountered NULLS in this function and it would not created the ERD. The problem appeared to be that I DID NOT include the pg_catalog in the VPP settings.