It depends on the advance ratio and other aspects of the situation.
If the blade is rotating relatively fast compared to the forward velocity, then the airfoils will experience appropriate flow at moderate angles for a full revolution. The flow will be attached and well behaved, the kutta condition will apply to the trailing edge as expected.
As you slow the rotor and/or increase forward speed, the retreating blade will start to see a very different flow condition. The local angle of attack will significantly increase -- resulting in locally stalled flow. Eventually, the local flow will actually be fully reversed. There will be areas of separated flow on the blade for part of its rotation. These phenomena will not be very well predicted by a potential flow method.
A tool that has a long history of being tailored for use on rotating wings -- like CHARM -- will have models and adjustments that will allow it to do better for longer in these situations.
However, VSPAERO's models have not been pushed hard into modeling retreating blade stall etc.
A stopped blade is a similar problem -- but potentially worse. With a potential flow model, the Kutta condition is going to be applied to the trailing edges of both stopped rotors. However, you have to consider whether that really matches the physics of the flow separation lines for that situation. Probably not.
Rob