Absolutely, it is possible to encapsulate Vue.js within a web component by utilizing .vue files along with a helpful library from Vue.js known as https://github.com/vuejs/vue-web-component-wrapper
Implementing this technique is remarkably straightforward!
Below is an example of the Component.vue file:
<template>
<div>
<h1>My Vue Web Component</h1>
<div>{{ msg }}</div>
</div>
</template>
<script>
export default {
props: ['msg']
}
</script>
Here is the main.js file:
import Vue from 'vue';
import wrap from '@vue/web-component-wrapper';
import MyWebComponent from './components/Component'; //this refers to your component file
const WrappedElement = wrap(Vue, MyWebComponent);
window.customElements.define('my-web-component', WrappedElement);
For further details, please visit https://medium.com/@royprins/get-started-with-vue-web-components-593b3d5b3200