CWF ask now that the first episodes of season 2 were released :
Lute imo raised Vaggie to be so fierce in part because she sees Abel a a weak, worthless cowardly bitch, and part of why she didn't wanted to admit who was the father was that she didn't wanted Abel to "infect" her daughter with his presence if Vaggie saw him as a brother.
The one time he tried to get near Vaggie, Lute chased him, sword in hand, throughout heaven for an hour, and with such a foul language in Spanish that Adam was actually impressed by her slurs and cursing vocabulary.
Yeah, a big part of the way Vaggie was raised by Lute was because she wanted to avoid her being anything like her eldest half-brother, who Lute always saw as pathetic and weak. And while she didn't want Abel to know about Vaggie....Adam did let it slip, though the only times Abel was really able to get near Vaggie was on Extermination Day.
But thankfully he was able to keep his own mouth shut about their relation - in part because he knew if Lute found out, he'd probably be the first person in Heaven to find out what happens in a Winner gets killed.
He did try getting near Vaggie once when Lute was around, though, and you are basically right in how it ended up.
Also, after Adam's death, Lute starts openly admitting that he was Vaggie's father, and has no problem protesting that if any child of Adam's should be allowed to take over if it has to pass to his child and not to her, it should be Vaggie - even though it's pointed out to her that her daughter is in Hell and seems to have no intention of returning to Heaven. Lute...does not take that well.