It's been a hot minute since I have worked within this subject, but I'll try to answer because of the lack of support around this topic. Typical VG settings do still apply to views with linked models. However, you cannot apply specific overrides to linked models like in standard Revit under the "By Linked View" umbrella or the "linked categories" tab. For example, you will not be able to bring in a shell model into a project and control specific elements that are shown from view to view. You will have to go in and either individually hide the specific shell elements in the parent file, or go in and set to demo/delete them in the shell file.
Additionally, annotative elements will not be able to shown in a parent model, so that workflows of dimensioning/annotating a series of units before linking them will be impossible. For example: Linking models in would be perfect for bringing in a row of townhomes to document multiple on a single sheet. However, because annotative elements cannot be displayed from links in Revit LT, means that all dimensions/annotations must exist in the parent model. Therefore, any change to a linked model will delete dimensions created in the parent view.
Because of this one issue, I believe my firm is going to lapse its Revit LT subscription. At the moment, there is nothing separating Revit LT from Autocad in terms of workflow and design. What advantage does linking in Revit LT provide over Xrefing in Autocad if the documentation workflow is worse? Although you have to update the dimensions after editing an Xref in Autocad, Revit LT just deletes them. Furthermore, I believe when consumers ask for "small firm" version of Revit, they meant a trimmed down version that caters to their field, and not just a demo version. For example: small architects find the cost of Revit to be exorbitant and wont use many of its cloud, engineering, simulation, or rendering features, but think that linked models, building information management, and 3D drawing would help their workflow. However, instead of just trimming down extra features, they also cut the core advantages that Revit has over other alternatives. Perhaps I will make a new thread discussing this topic, but I don't get paid to look a forum for a product that my firm decided not to proceed with.