Question:

Why the latest Minor Version does not appear in the Vault Version history if the Set new major version entry action is enabled?

Answer:

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:

Related Documentation:

Vault Help Documentation: Defining Document State Entry Actions