Two Laravel Apps interfering on virtual host (XAMPP)

Question

I have 2 Laravel apps located in htdocs on XAMPP. Each of them have a virtual hosts setting like so:

<VirtualHost *:80>
    DocumentRoot "C:/xampp/htdocs/app1/public"
    ServerName app1.test
</VirtualHost>

<VirtualHost *:80>
    DocumentRoot "C:/xampp/htdocs/app2/public"
    ServerName app2.test
</VirtualHost>

with proper settings in etc/hosts file:

127.0.0.1 app1.test
127.0.0.1 app2.test

But for some reason the are interfering with each other, for example seems that .env values for the database are jumbled up, since database from app1 is referencing a table from database from app2 and this error appears:

Base table or view not found: 1146 Table 'some_table' doesn't exist

Any help is appreciated.