Do VCs invest in companies doing the same thing? (I will not promote)

So I have an investor meeting next week and the venture I’m building is very similar to one of this VCs existing portfolio companies who they just invested in. However, the one we’re building is more defendable, scalable, has more revenue angles and ultimately does a better job of solving the problem at hand than their portfolio company. I have two main concerns: A.) This meeting with the fund is instead an information fishing exercise from them to gain more information on their portfolio competitor. B.) They feed information on what we’re building back to their portfolio founders who will have enough cash left in the bank to begin exploring how to implement those ideas. I’m also quite green to this whole VC and fundraising world so excuse me if these are naive concerns or questions. But please let me know if there’s anything I should consider going into this.