Step 1: Picture the loop as two frequency dividers feeding a comparator.
All the phase detector needs is two pulse trains at the same rate. The input branch produces one pulse for every $20$ cycles of the $10$ kHz input signal. The feedback branch produces one pulse for every $1024$ cycles of the VCO output.
Step 2: Work out the rate on the input branch.
\[ r_{in} = \frac{10 \text{ kHz}}{20} = 0.5 \text{ kHz} \]
For the loop to stay locked, the feedback branch must produce pulses at this same rate, $r_{in} = 0.5$ kHz.
Step 3: Work backwards through the feedback divider.
The feedback divider takes the VCO frequency $f_{out}$ and divides it by $1024$ to give $0.5$ kHz, so
\[ f_{out} = 0.5 \times 1024 = 512 \text{ kHz} \]
Final Answer:
The VCO settles at $512$ kHz once the loop locks.
\[ \boxed{f_{out} = 512 \text{ kHz}} \]