VDQ 1 means that it's a "valid" discharge cycle, that could be used to calibrate battery, if you discharge all way down to < than 3248 mV and stay there for at least 15 seconds, without your device shutting down (which, with standard battery, means that you need to either use replacement bme, or [usually] stop BME when getting close to treeshold, or your device may shutdown prematurely). That is, if you don't "invalidate" current discharging cycle, by resetting device or connecting and disconnecting charger (few times in a row, or for too long - short, accidental charging doesn't seem to reset VDQ to 0).

As for 1699 mAh capacity, it is possible that you got such relative one with very low discharge current (i.e. device unised/used rarely during discharge cycle when it got calibrated) and very good battery (polarcell/scud or new Nokia's 1400 mAh Q10 original BL-5J).

Otherwise - and more likely - you just got uncalibrated lately, which means that chip reset to 2048 mAh, and goes down from there with everyy calibration cycle. It means, that you need one or two (depending on real capacity of your battery) more calibrations, 'till chip starts to show correct values.

The above may be - also - a reason why BME goes crazy and shows 75% just after 97%. BNF shows exactly what charging chip "thinks", so you will get more realistic readings from there (although, if chip is, indeed, still uncalibrated, it will "lie" too - you will get something like 20% left, before going straight to 0, upon device reaching shutdown state).

Hope it helps,
/Estel