Yes, a special version of avast! Virus Cleaner is stored inside the avast! VPS file - so it's updated during a VPS update (when the Virus Cleaner actually is updated, of course).
However, avast! Virus Cleaner is a simple "remover" for a limited number of common worms/viruses. It doesn't have any resident protection itself, no archive scanning, etc - so I'm rather worried about the original post: "my daughter is using this on her PC". It's not a program you are supposed to be used "continuously".