I was here
I assume so, that is why it has a steering sensor under the steering wheel.
Do understand the VDC system on the 156 is a very early example of the systems incarnation.
Comparing it to say the system on the latest Guilia is like comparing a Gloster Gladiator with an F-16. ;D
Yes, it absolutely brakes the relevant wheel to correct skids/slips etc.
I found this out to my amusement on Sooty (1.9JTD Sportwagon, still lives) after replacing the steering wheel and clock spring incorrectly (1 spline out). She would drive down the road perfectly for about ten metres (straight), then as soon as I turned the wheel even slightly, she would rapidly pulse brake the opposite side of the car, get really upset (beep, beep, beep) and then tell me that the VDC was turned off (centre display)
Was hilarious fun for about 5minutes.
Did demonstrate that it worked though whic was kinda cool.
One of the good things about series 1 cars is no VDC...
Only time I've really been "inconvenienced" is trying to negotiate a large diameter two-lane roundabout at +50kph in heavy rain. In which case, yeah it does just plough straight on :D
What works for the platform to battle understeer is to lift of accelerator or even tap the brakes in the corner.