I want to work over the site of smooth manifolds with Grothendieck topology induced by open immersion. I am primarily concerned with the the following question: in what ways can we classify vector bundles over a manifold, i.e. how can we make the functor sending manifolds to vector bundles over said manifold representable.
Classically, if $M$ is a paracompact Hausdorff space (potentially we need even less than this but I am not sure) then isomorphism classes of rank $k$ vector bundles over $M$ are in bijection with homotopy classes of maps $M\rightarrow BO_k$. In other words, while the functor from manifolds to Set given by sending a manifold to isomorphism classes of rank $k$ vector bundles over $M$ is not representable, the corresponding functor from the homotopy category of paracompact Hausdorff spaces is.
So to get a representable functor had to leave our category twice: once so that we could discuss spaces that aren't manifolds, and another time because we had "too many morphisms". I don't quite have a good feeling for why the representability problem should have a solution of this form (i.e. I understand the proof of this statement, but don't have good intuition for why this "fixed" the problem).
Alternatively, we can upgrade our vector bundle functor to instead be a pseudo functor from smooth manifolds to groupoids, where we send $M$ to the groupoid of rank $k$ vector bundles over $M$. This has no hope of being represented by a smooth manifold as the groupoids are honest groupoids and not just sets masquerading as groupoids. However, this functor is a (2,1) sheaf and so is essentially a stack by definition (this is the stack quotient of a point by $GL_k$), even more it is differentiable stack, so in the (2,1) category of differentiable stacks the object represents the functor sending a differentiable stack to it's groupoid of rank $k$ vector bundles. I think this is not so mysterious, we have by hand enlarged our category of smooth manifolds to include geometric objects which represent not representable functors in the original category.
My question is this: how are these two approaches related? I vaguely know that we can do some form of homotopy theory on the category of groupoids, and that $\pi_0$ of the vector bundle groupoid should give us the isomorphism classes, which seems to hint that there should be some connection to classical situation, but I cannot see why or how. Potentially this is just case of people using similar but ultimately different language to talk about similar but ultimately different phenomena and I have just confused myself.