The second track above the main track (to which pip is to be applied) shows full screen, outside the adjustable picture in picture selection window. The pip window and pip video (or still image) are decoupled.
The tracks have numbers, so please refer to track numbers. In VPX, track 1 is the bottom or background, track 2 will sit on top of it. If the objects on both tracks are the same size, you will only see the object on track 2 because it is over top of the object that is on track 1. Select the object on track 2, use Effects, View/Animation, Size/Position and move the zoom slider to the left to zoom out (makes the image smaller). Drag the object around on the screen. Now you see both objects. Note the left and top coordinates and also the size. That is how PiP actually works.
Post a screen shot with a description of what you are trying to do.