Why the latest Minor Version does not appear in the Vault Version history if the Set new major version entry action is enabled?
The latest minor version is changed to the major version after the document status changes. Example: V0.1 changes to V1.0 and V1.1 changes to V2.0 after approval.
Also, this change is captured in the Document Audit Logs. Example screenshot:
Vault Help Documentation: Defining Document State Entry Actions