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I decided to trace this with a simple project but instead of submitting an official bug report I circumvented the problem.
The C++ Builder step is calling brcc32.exe to compile the resource with the version information as expected. However it is only looking in C:\Windows\System32 instead of using the path or some other directory information.
I proved this by running the command line at a prompt, which built the version info correctly. I then copied brcc32.exe to the system32 directory and the visual build process then worked correctly.
I'm not sure how VBP looks for brcc32 to run, but in this case it expects it in the windows system directory?
For the moment my problem is solved, but the mystery continues...
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