Another case of Permalink 404 after a move

I made a copy of my company’s live site to a VM so I can work on improving it (original site is sgheritage.org) and once I got it working I was testing some of the links. While the home page works, all other posts, including new ones I make get a 404 error.
I have been over about 10 similar issues on the forums but they are all old and nothing yet has worked. Luckly I am in a VM so I can play without messing things up for the live site.
This image shows the files in the www folder, including permissions: https://www.dropbox.com/s/o0jxcfsci5hgp5c/files.PNG
and this one of the data in the .htaccess file: https://www.dropbox.com/s/w3jxazf8d0dub2i/htaccess.PNG.

If I use the default permalink setting everything does work but I am trying to mirror the live site as much as possible and that includes post names in URL using pretty mode.