There's entitlement going on here, but it isn't yours, OP. It's your manager's and VP's. They believe they are entitled to reduce the raise they told you you were getting, set limits on what you should earn based on what you earned when you worked there last, and not go to bat for you -- and still have you keep working there as a high contributor.
Seriously, why would you stay?
I get that you liked working there, but will you still enjoy it when you're grinding your teeth with resentment that your boss doesn't have your back or value you the way you feel you should be valued? This isn't just about money; it's about how you're treated.
I'd say you have a couple of choices: Either smile and quietly go find another job while continuing to work there, or tell your manager that if you don't get the raise you were told you would, you're going to start looking. You could also combine those options by getting another job offer and taking it to your manager, saying that they can either match the new offer or watch you walk away. That will probably cost them a lot more than the extra 1% you feel they stiffed you on.
If you really want to work things out there, you could also offer to stay if they guarantee you that extra 1% raise in 6 months, in writing. But I doubt that would work, because it doesn't sound like they take you seriously.
I recently left a job where I'd previously been happy because of one new person's unresolved bad behavior. It's hard to do, leaving a job you have some positive feelings for. But I have absolutely no regrets, because jobs and companies change, and when they change for the worse, they typically don't magically turn around and then get better. For me, there is no more important relationship than the one with your manager. If that isn't solid, if you don't feel respected, I wouldn't expect that to improve.
Thank goodness for FU money.
Good luck.
