hang on hang on, there's a bit of confusion here..
Flutter is one thing, compressibility is another thing, and VNE is still another thing..
Example of flutter (start from 1.30)
what you can see from the video is that the oscillation of the control surface triggers the flutter, but in theory you could "stay in flutter" like in this video
and then slow down.. although it's definitely an unhealthy hobby..
if you push beyond the flutter speed you will surely have a fracture.
The VNE would sit right before the aileron excitation.
The important aspect which I don't think they simulated in CoD either (but I hope I'm wrong) is that the aeroplane structures are
elastic, and as such flex, deform, fold and break.