Villa boasted a commanding two-goal lead heading into the final 20 minutes at the King Power Stadium courtesy of impressive strikes from midfield duo Jack Grealish and Carles Gil.
But a late capitulation saw unbeaten Leicester stun the Villans to move second in the Premier League behind leaders Manchester City, as Ritchie de Laet, Jamie Vardy and Swansea loanee Nathan Dyer found the net in a pulsating finale.
“I’ve never felt this bad, ever,” said Sherwood. “There was a lot of bad play there in the last half hour. We turned over stupidly
“What can I say? I’m gutted for everyone who’s associated with the football club. We have to stop letting in soft goals. Who cares if we played well? We lost. Totally lost.”
Leicester’s rise has been remarkable. The Foxes have taken 33 points from their last 14 matches which ranks them alongside Manchester City as the form team since early April. They have won six of their last nine Premier League matches.
The run of form bridges the close season departure of Nigel Pearson and the subsequent hiring of Claudio Ranieri, who chose to calm expectations despite a blistering start to the season.
“It’s not March or April, It’s only September,” said Ranieri, whose Leicester side moved seven points clear of Chelsea, from where the Italian was sacked in 2004.
“We are solid with our feet on the ground. Things can change. The goal is to stay in the Premier League.”