I want to use ADUM3160 for my controller's USB which is self powered and running in device mode.
VBUS pin is used for connect / disconnect sensing. but I do not see provision for the VBUS isolation. Can one guide me how to achieve the isolation in this case?
The Vbus1 and Vbus2 pins are power input to each isolated side of the chip. The USB signaling runs on a 3.3V bus derived from Vbus in the most common applications. 3.3V can be applied to Vbus in some modes. Vbus is not a connect and disconnect sensing pin, it is a power input.
The Vbus pins are common to the other pins on the respective side of the chip, so the two Vbus pins are isolated from each other. Since you have a self powered peripheral, I am assuming the isolator is on the PCB with your peripheral controller. Power to Vbus2 can be derived from the local power supply as either 5V or 3.3V at your discretion. Power for Vbus1 can come directly from the cable.
.If I have misunderstood your application, please send a schematic and further explanation.