404 errors in frontend

Hi,
I have an issue with apache setup - or so I think.
Every frontend page/url returns 404 - except home page.
I've checked my vhost setup, htacces, traced mod_rewrite and I can't figure out the problem.
All the sources state that I'm using right configuration but this for some reason doesn't work.
I'm running subdomain multisite installation - my main installation is on subdomain.
vhost configuration

<VirtualHost *:80>
    ServerName predprod.maindomain.hr
    DocumentRoot /var/www/predprod/public
    ServerAlias *.predprod.maindomain.hr
    ErrorLog ${APACHE_LOG_DIR}/predprod_error.log
    CustomLog ${APACHE_LOG_DIR}/predprod_access.log combined
         RewriteEngine on
        LogLevel trace3
    <Directory /var/wwww/predprod/public/ >
        AddOutputFilterByType DEFLATE text/plain text/css application/json application/javascript text/xml application/$
        Options Indexes FollowSymLinks MultiViews
        AllowOverride All
        Order allow,deny
        Require all granted
       Allow from all
    </Directory>
</VirtualHost>
# vim: syntax=apache ts=4 sw=4 sts=4 sr noet

.htaccess :

RewriteEngine On
RewriteBase /
RewriteRule ^index\.php$ - [L]

# add a trailing slash to /wp-admin
RewriteRule ^wp-admin$ wp-admin/ [R=301,L]

RewriteCond %{REQUEST_FILENAME} -f [OR]
RewriteCond %{REQUEST_FILENAME} -d
RewriteRule ^ - [L]
RewriteRule ^(wp-(content|admin|includes).*) $1 [L]
RewriteRule ^(.*\.php)$ $1 [L]
RewriteRule . index.php [L]

wildcard dns is enabled for *.predprod subdomain
Admin works fine.

mod_rewrite doesnt pass through URL to last RewriteRule ( so I think )

[Sun Oct 09 16:37:28.760462 2016] [rewrite:trace2] [pid 30223] mod_rewrite.c(476): [client 31.217.69.86:60943] 31.217.69.86 - - [predprod.maindomain.hr/sid#7f98aa4b1140][rid#7f98aa43a0a0/initial] init rewrite engine with requested uri /new-test-post/
[Sun Oct 09 16:37:28.760931 2016] [rewrite:trace1] [pid 30223] mod_rewrite.c(476): [client 31.217.69.86:60943] 31.217.69.86 - - [predprod.maindomain.hr/sid#7f98aa4b1140][rid#7f98aa43a0a0/initial] pass through /new-test-post/

any ideas ?