Creating Agency: Adding multiple states nightmare (PLEASE HELP!!)

Anyone who isn't a licensed attorney in VA likely shouldn't be offering advice on what entity (or not) is required to sell insurance in VA and you should seek the guidance of a VA attorney. That said, it doesn't appear you have a presence in the state and as a non-resident license holder (if so), the requirement may not apply to you. I'm licensed in many states and unless you have a contract obligation to have an entity license in VA (which you may or may not have), the requirement seems highly unusual. Would be a shame to spend hundreds of dollars (potentially annually) setting it up wrong because you didn't speak with an attorney.
None of what you're saying applies to what he's trying to do.

He's trying to license his AGENCY, not himself. That requires a registered agent in the state of VA (and other states) to receive legal documents on behalf of your business (agency).

You don't have to be an attorney to tell an agent how to do this, you just had to have done it yourself.