Yes, I figured this out after searching DokuWiki Wiki. However, the main Security article linked from the Installation page, Step 2 does not include this this directive:
Deny Directory Access in Apache
Default for AllowOverride in the <Directory /var/www/> is none, should be Limit. If you want to allow rewrites, add 'FileInfo' as well. See http://httpd.apache.org/docs/2.2/mod/core.html#allowoverride
for more information.
So it talks only about adding Limit & (optionally) FileInfo directives.
There are two other pages on the Wiki mentioning AuthConfig directive but they are not linked from the main Installation instructions and need to be searched manually.
Also, the question is: why do we need "Satisfy all" at all? This is the default mode for Apache2.