Rails running on bash on ubuntu

I am trying to make a setup for developing Ruby On Rails from Bash On ububntu but with a mysal db running on docker. Mysql is running fine and i connect to it with

docker exec -it myinstance mysql -uroot -p

I got my rails app running after running bundle install and then rails s. But when I hit the page or try executing rake db:migrate i get an error

Lost connection to MySQL server at 'reading initial communication packet', system error: 0

Maybe it is my MySql setup on bash that is not ok? Or maybe there is some limit to bash here? Any help is much appreciated.

I tried connecting from bash with mysql command but no luck either

Anyone has tried something similar?