Redmine 3.3.0 stylesheets not included in application.css

I have installed redmine, managed to get it started but the UI seems to be missing it's css styles. If I follow the link for application[SomeId].css It show me an empty css containing the following message:

 /*
 * This is a manifest file that'll be compiled into application.css, which will include all the files
 * listed below.
 *
 * Any CSS and SCSS file within this directory, lib/assets/stylesheets, vendor/assets/stylesheets,
 * or any plugin's vendor/assets/stylesheets directory can be referenced here using a relative path.
 *
 * You're free to add application-wide styles to this file and they'll appear at the bottom of the
 * compiled file so the styles you add here take precedence over styles defined in any styles
 * defined in the other CSS/SCSS files in this directory. It is generally better to create a new
 * file per style scope.
 *
 */

production.log seems fine

  Processing by WelcomeController#index as HTML
  Current user: anonymous
  Rendered welcome/index.html.erb within layouts/base (1.0ms)
Completed 200 OK in 18ms (Views: 9.4ms | ActiveRecord: 4.0ms)
Started GET "/assets/application-e80e8f2318043e8af94dddc2adad5a4f09739a8ebb323b3ab31cd71d45fd9113.css" for ::1 at 2016-09-16 01:34:36 +0300
Started GET "/assets/application-c2899b9307d416d19b1525a85be8085b93df756e91a5b0ee50ab1333f5ade73a.js" for ::1 at 2016-09-16 01:34:36 +0300

.htaccess

<IfModule mod_fastcgi.c>
    AddHandler fastcgi-script .fcgi
</IfModule>
<IfModule mod_fcgid.c>
    AddHandler fcgid-script .fcgi
</IfModule>
Options +FollowSymLinks +ExecCGI

RewriteEngine On

RewriteRule ^$ index.html [QSA]
RewriteRule ^([^.]+)$ $1.html [QSA]
RewriteCond %{REQUEST_FILENAME} !-f
<IfModule mod_fastcgi.c>
    RewriteRule ^(.*)$ dispatch.fcgi [QSA,L]
</IfModule>
<IfModule mod_fcgid.c>
    RewriteRule ^(.*)$ dispatch.fcgi [QSA,L]
</IfModule>

ErrorDocument 500 "<h2>Application error</h2>Rails application failed to start properly"

• redmine 3.3.0
• ruby 2.2.4
• rails 4.2.6
• latest xampp xampp-win32-7.0.9-1-VC14-installer

Any idea on how to fix this?