WordPress multisite with domain mapping and virtual host on local with fake domain

DocumentRoot for each VirtualHost should point to the directory where you installed WP multisite. There is no actual directory for subsites, they’re all virtual.

Using your example:

<VirtualHost *:80>
    DocumentRoot "C:/home/wp-intall-directory"
    ServerName mysite-1.dev
    # not required Alias /mysite-1.dev "/home/mysite-1"
    <Directory "/home/wp-intall-directory">
        Options Indexes FollowSymLinks Includes ExecCGI
        AllowOverride All
        Order allow,deny
        Allow from all
    </Directory>
</VirtualHost>

<VirtualHost *:80>
    DocumentRoot "C:/home/wp-intall-directory"
    ServerName mysite-2.dev
    # not required Alias /mysite-2.dev "/home/mysite-2"
    <Directory "/home/wp-intall-directory">
        Options Indexes FollowSymLinks Includes ExecCGI
        AllowOverride All
        Order allow,deny
        Allow from all
    </Directory>
</VirtualHost>
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