what is "really" going on is to some extent still a matter of debate. You can find people who say that what's happening is the spontaneous breaking of the residual global symmetry after the gauge has been fixed (e.g.
physics.stackexchange.com/a/203739/50583), people who rephrase everything in terms of gauge-invariant quantities (Fröhlich et el.) and find everything somehow still works out (in terms of practical results) without assuming a non-zero VEV for the gauge-variant Higgs