Vacation Rule did not function as intended for Contract Purchase Agreement approval

Buyer submitted a CPA for approval.  The Approver (Purchasing Supervisor) (Approver A) has an active vacation rule to delegate the approvals to the Director (Approver .   Approver B did get the notification and approved the CPA but instead the document changing to approved status the the buyer got an error message "No approver found for Contract Purchase Agreement and the CPA "requires reapproval".   

One thing to note is the workflow history it shows the delegation by Approver A and the Approval by Approver B.

The Director (Approver is normally not in the approval path for PO's, BPA's and CPA's.

Does the Document Type set up override the vacation rule?  Attached are the set up we have for this.