This is not particular to the Drupal site but is caused by the hosting (local Vagrant) environment's PHP configuration.
Try increasing these values in php.ini:
upload_max_filesize = 64M
post_max_size = 64M
memory_limit = 64M
NOTE: If you are using Webform for anonymous file upload to your site and you are setting high limits on file size like this you are quickly going to fill up a lot of disk space (most likely with spam).
See answer on Stackoverflow.