Why standard, virtual host Drupal 7 config causes 403 (Forbidden) in Apache2?

Question

Virtual host declaration causing the problem (source):

<VirtualHost *:80>
  ServerAdmin admin@d7
  DocumentRoot /vagrant/d7
  ServerName www.d7.local
  ServerAlias d7.local
  RewriteEngine On
  RewriteOptions inherit
  <Directory /vagrant/d7>
    Order allow,deny
    Allow from all
  </Directory>
  <Directory /vagrant>
    Order allow,deny
    Allow from all
  </Directory>
</VirtualHost>

error logs:

[Mon Nov 04 12:23:11.947082 2013] [authz_core:error] [pid 2471] [client 10.0.2.2:58238] AH01630: client denied by server configuration: /vagrant/d7/

I have no idea why this isn't work...

With above rule I have forbidden on drupal site and apache welcome page too (index.html)

ls -ld /vagrant/d7 command output:

drwxrwxrwx 1 vagrant vagrant 8192 Nov  4 10:05 /vagrant/d7