I've come across what appears to be a related issue. When Apache's logs are rotated (either by cron job or by command) and it is restarted (using the same script in which umask is set) Passenger fails to start. Here is the new error message:
[error] *** Passenger could not be initialized because of this error: Unable to start the Phusion Passenger watchdog because it encountered the following error during startup: Tried to reuse existing server instance directory /var/www/tmp/passenger.
x.y.zzzzz, but it has wrong permissions
/var/www/tmp/passenger.
x.y.zzzzz is then removed, apparently upon first access to the website. Apache then throws a 403 for every request. Passenger works again after manually restarting Apache
or rotating the logs again. I will continue to look into this, but I thought I should mention it to you.
Thanks again,
John