So I solved it.
If you define your rewrite rules inside element they should look like
<Directory /var/www/local.example.com>
...
RewriteEngine On
RewriteCond %{REQUEST_FILENAME} !-l
RewriteCond %{REQUEST_FILENAME} !-d
RewriteCond %{REQUEST_FILENAME} !-f
RewriteRule ^images/(.*)$ /lost/index.html?image=$1 [R]
</Directory>
If you define them "globally" outside the (per-server context) they should look like
RewriteEngine On
RewriteCond %{LA-U:REQUEST_FILENAME} !-l
RewriteCond %{LA-U:REQUEST_FILENAME} !-d
RewriteCond %{LA-U:REQUEST_FILENAME} !-f
RewriteRule ^/images/(.*)$ /lost/index.html?image=$1 [R]
This is due the fact that if used in per-server context (i.e., before the request is mapped to the filesystem) SCRIPT_FILENAME and REQUEST_FILENAME cannot contain the full local filesystem path since the path is unknown at this stage of processing. Both variables will initially contain the value of REQUEST_URI in that case. In order to obtain the full local filesystem path of the request in per-server context, use an URL-based look-ahead %{LA-U:REQUEST_FILENAME} to determine the final value of REQUEST_FILENAME.
What is also important - the pattern has to be different in both cases. In second case it has to starts with '/' while in the first one not. This is due the fact that REQUEST_FILENAME contains the '/' at the beginning for the second case but it does NOT for the first one