Dictation while Voice Control is enabled

I have Voice Control enabled but can't dictate any text. Some other commands work (about 50 % of them and I have to yell at my MBP) but it is listening.

The docs say https://support.apple.com/en-gb/HT210539

Dictation

When the cursor is in a document, email message, text message, or other text field, you can dictate continuously. Dictation converts your spoken words into text.

So I guessed it should work just with VC active. However, I noticed there is a Dictation tab on the Keyword system settings. When I enable it simultaneously I get a warning message "Keyboard Dictation is disabled while Voice Control is turned on".

What does this mean? Has VC its own dictation feature, independent from the Keyboard Dictation?

Or is Dictation from VC something else? Dictate to do something, not to write something?

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Using Catalina on MBP