Bitrix CMS, Apach 2.4 (VertrigoServ) htaccess issue - apache

Question

I've been struggling whole day with that issue, but still have no clue, why it does not work. I deployed a website from hosting to local server to test/update purposes. Admin park works fine, main page works fine and directories and components work fine. But every component which relies on url -rewrite engine fails to work. It sends me to 404. For example I can look through /catalog/ directory but if I request /commodity/good/ I am sent to 404, so happens with news component etc. I've tried many variations of server config but result either the same either server error.
I reset my experiments to default config, it seems it has to work
<Directory />
Options FollowSymLinks
AllowOverride None
Require all denied
</Directory>
<Directory "C:\VertrigoServ\www">
Options Indexes FollowSymLinks Includes
AllowOverride All
Require all granted
</Directory>
And it seems it works, but in a strange manner. If I add Redirect instruction to .htaccess it performs that redirect. But Bitrix does not work properly anyway.
Here is what I left in main .htaccess file
Options -Indexes
ErrorDocument 404 /404.php
<IfModule mod_php5.c>
php_flag allow_call_time_pass_reference 1
php_flag session.use_trans_sid off
#php_value display_errors 1
#php_value mbstring.internal_encoding UTF-8
</IfModule>
<IfModule mod_rewrite.c>
Options +FollowSymLinks
RewriteEngine On
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-l
RewriteCond %{REQUEST_FILENAME} !-d
RewriteCond %{REQUEST_FILENAME} !/bitrix/urlrewrite.php$
RewriteRule ^(.*)$ /bitrix/urlrewrite.php [L]
RewriteRule .* - [E=REMOTE_USER:%{HTTP:Authorization}]
</IfModule>
<IfModule mod_dir.c>
DirectoryIndex index.php index.html
</IfModule>
<IfModule mod_expires.c>
ExpiresActive on
ExpiresByType image/jpeg "access plus 3 day"
ExpiresByType image/gif "access plus 3 day"
</IfModule>
If you faced similar issue please help me to find solution...