I know Yakumo over at Assembler says as much, and that he saw it running behind closed doors, but I'm guessing it was "100% finished" in the same way Star Fox 2 was "100% finished." Which is to say, yes, they were done, but not not actually ready to go gold.
I'm so curious what it would have looked or played like. Unlike VF3 on the dreamcast, VF3 on the saturn was actually handled by AM2. And this was after all they'd learned doing VF2, then Fighters Megamix, then Shenmue. I'd imagine that, by the time VF3 rolled around, they could probably have made that baby sing like no one else.
It's insane that not a single screenshot of this widely talked about version has ever surfaced, outside of those obviously fake renders a while back.