Pre Corona I used to drop sky divers in the Inn Valley near Innsbruck and we climbed up to 15000 feet. It’s always a special VFR rules situation since we can’t file an IFR flight plan for 30 flights a day off a meadow for obvious reasons so we notified Innsbruck Radar every time we took off with always the same Squawk. The Inn valley is quite narrow and aircraft approaching LOWI constantly crossed our departure and approach so we often had (well, have, but now without me) the situation of close encounters with both VFR and IFR traffic. Innsbruck Radar often tells us traffic and asks us to confirm in sight. If we can’t see them we tell them “traffic not in sight” or simply “blind” and they take special care to seperate this traffic from us. Sometimes they tell us to delay the drop due to conflicting traffic.
It all depends a lot on the situation. Normally, if both aircraft have checked in on the frequency they seperate them, even if it’s VFR.