SFTP is the ssh file transfer protocol - Its not related to FTP at all. The 'encrypted' varient of FTP is FTPS.
Unfortunately, there's not enough information for a definitive answer but the ubuntu page on vsftp suggests a few possibilities.
The one that seems most plausible is that you have ftp access restricted to specific users
Check for lines that say
userlist_deny=NO
userlist_enable=YES
userlist_file=/etc/vsftpd.allowed_users
This specific config dosen't deny any users explicitly but only allows users in a specific list to access. Likewise check if there's a denied list.
Another possibility is that vsftp is set up for virtual accounts, and there's an identical account name and password for FTP and system for one user and not the other.