Virtual Radar Server does not work properly

Not as far as i know.
Maybe you just didn’t daemon-reload after changing the service file?

Have a look at the dump1090-fa service file, no group give there.
What is useful though:

SyslogIdentifier=VRS

That way it doesn’t say mono or w/e the binary is called.

i’ve tried it also with a daemon-reload and it still tried to run as root
Only giving the user and the group in the service file made it.

I also have seen that all other services are not using this option.
No idea what went wrong, but as long as i have it working, i am good with it.

What are all the steps needed if I want to run it that way?

I used this guide here and adatped it my local settings to the service file documented at the end of the guide. For this i needed to adjust the directories and the user/group.

https://steamforge.net/wiki/index.php/How_to_setup_Virtual_Radar_Server_and_pingStation_for_offline_use

I recently had a similar issue and after searching this thread came up. It happened after I was messing with different versions of mono and the fix was to completely remove mono and configurations for mono. Just doing a sudo apt remove mono-complete && sudo apt autoremove && sudo apt clean && sudo apt install mono-complete did not fix the issue. I needed to purge as well. This was on Ubuntu 20.04.

These were some of the commands I used:

sudo apt-get remove mono-complete
sudo apt remove --purge --auto-remove mono-runtime
sudo apt-get purge --auto-remove mono-complete
sudo apt-get purge mono-runtime
sudo rm -rf usr/lib/mono /usr/local/bin/mono /usr/local/etc/mono /usr/local/lib/mono

I fixed it already by reimaging the whole device. After the installation it ran directly without issues.
So i assumed a mismatch based on different installs/uninstalls on this device.

So far i am good