Can I use menu path with argument wildcard in Views?

I have Views profile list displayed as page. View path is ‘mymod/%mymod_param/foo’.

According to docs I can set wildcard value by a function (hook_menu)

Function to set url param:

function mymod_param_to_arg($arg) {
 //some logic returning param: 'all' or $nid related to current user object
}

Above function works.

Contextual filter settings:

Wildcard is altered in url properly. When I’m testing View in Views UI all works ok. But when I’m clicking main menu link leading to this View, I’ve always 403 or 404 (based on filter settings)