Since the material is orthotropic the modeling of the deflection may be complex. For an isotropic material (same properties in all directions) the elastic modulus, $E$, is the same in all directions and is the material property that governs deflection according to
$$ρ=\frac{EI}{M}$$
Where $ρ$ is the deflection radius of curvature, $I$ is the moment of inertia about the centroidal axis and $M$ is the bending moment.
For an orthotropic material I think (but I am not sure since I have not analyzed bending in orthotropic materials) that it would be the elastic modulus in the direction of the $x$-axis (along the length of the beam) that would govern the vertical deflection. The reason I think this is because vertical deflection is due to the tensile and compressive stresses (and strains) occurring along the length of the beam, at least for small deflections.
I think the modulus of elasticity in the $y$ direction would govern deformations of the beam along the $y$-axis. I wouldn't consider vertical deflection as the same as vertical deformation. I think any vertical deformation would be small except perhaps at locations of concentrated vertical loads and would be essentially zero for pure bending (again assuming small vertical deflections).
ADDENDUM
In response to your follow up questions:
(1) I edited my OP about 5 minutes ago, where I modified the shear modulus in the x-y direction, and I saw that this significantly changed the vertical displacement. Specifically, increasing this shear modulus increased the vertical displacement. Isn't this a little bit counter-intuitive?
For an isotropic material the shear modulus $G$ is related to the modulus of elasticity $E$ by
$$E=2(1+ν)G$$
Where $ν$ is Poisson’s ratio, which equals –(lateral strain)/(longitudinal strain). Since under axial loading lateral strain is negative (width of beam contracts) with positive longitudinal strain, $E$ will generally be greater than $G$. However, if you substitute $G$ for $E$ in the previous equation, the radius of deflection becomes
$$ρ=\frac{2(1+ν)GI}{M}$$
So increasing $G$ (or $E$) will increase the radius of curvature. The larger the radius of curvature the less the vertical deflection. This agrees with intuition that the stiffer the material (greater $E$ or $G$), the less the deflection. So your observation that an increase in shear modulus increased vertical displacement would not be consistent if the material were isotropic. Perhaps, however, your observation is correct for an orthotropic material, but as I said I am not familiar with the analysis of orthotropic materials.
(2) What is the difference between vertical deflection, vertical deformation, and vertical displacement? I thought the former 2 were the same, and the latter is a quantitative measurement of the former 2?
I should think vertical deflection and vertical displacement (first and third) are the same if it means a change in the position of a point on the beam in the y direction due to a vertical load. Furthermore, I should think that vertical deformation (the second) would be a change in the thickness of the beam due to loading.
Hope this helps.