<VSS File> (<database file>) is a branch parent for a file which is not being archived. No versions deleted.
This message has the following cause and solution:
This is an informational message only, generated while performing an Archive. Archive did not delete a file you asked it to, because it contains a portion of history for a file which is branched elsewhere and still active.
If you need to delete the file, you'll need to track down all branches of the file (via the Paths tab on the Properties dialog box), then tell Archive to delete all branches of the file, too.