I'll relay some information that was very recently passed on to me that helped.
In Abbott and Von Doenhoff, "Theory of Wing Sections", on page 4 Figure 2, you'll see plots of CL vs Alpha for various aspect ratio wings. Note how the AR is basically altering the slope of the line.
Now to the differences between the models. The linear approximation of lift is true for "common" angles of attack, that is between about -5 and 15 or so as you've stated. This is partly because linear theory CL actually trends approximately as sin(alpha) rather than linearly so the small angle approximation works.
In fact, if you plot the CL vs Alpha from 0 to 90 degrees, you'll end up with something that looks a lot like sin(2*alpha). I show this for the benefit of the forum but assume that you've seen this as well. The difference between these models may lie in the wake behavior. This is where I get a bit fuzzy so if I make a misstatement, forgive me. Linear theory assumes flat wakes and I *think* that AVL uses this assumption based on the user document. VSPAERO allows the wakes to deform over several wake iterations. Usually, the result is converged for simple geometries by about ITER 2 or 3. More complex interactions such as multiple lifting surfaces or wing + propellers need more iterations to capture the wake deformation.
I think the assumptions here are mostly correct but maybe Dave Kinney or Rob McDonald will call me out on something. That's how we learn.
From the AVL User Documentation text file:
Vortex-Lattice Modeling Principles
==================================
Like any computational method, AVL has limitations on what it can do.
These must be kept in mind in any given application.
Configurations
--------------
A vortex-lattice model like AVL is best suited for aerodynamic configurations
which consist mainly of thin lifting surfaces at small angles of attack
and sideslip. These surfaces and their trailing wakes are represented
as single-layer vortex sheets, discretized into horseshoe vortex filaments,
whose trailing legs are assumed to be parallel to the x-axis. AVL provides
the capability to also model slender bodies such as fuselages and nacelles
via source+doublet filaments. The resulting force and moment predictions
are consistent with slender-body theory, but the experience with this model
is relatively limited, and hence modeling of bodies should be done with
caution. If a fuselage is expected to have little influence on the
aerodynamic loads, it's simplest to just leave it out of the AVL model.
However, the two wings should be connected by a fictitious wing portion
which spans the omitted fuselage.