cucumber and cheese database returns server error

I`m trying to run the local app on windows from cucumber and cheese book and I get a server error.

Below is the terminal output:

F:\RM\puppies>rails s
C:/Ruby24-x64/lib/ruby/gems/2.4.0/gems/activesupport-3.2.11/lib/active_support/values/time_zone.rb:270: warning: circular argument
 reference - now
=> Booting WEBrick
=> Rails 3.2.11 application starting in development on http://0.0.0.0:3000
=> Call with -d to detach
=> Ctrl-C to shutdown server
[2018-01-15 10:57:48] INFO  WEBrick 1.3.1
[2018-01-15 10:57:48] INFO  ruby 2.4.2 (2017-09-14) [x64-mingw32]
[2018-01-15 10:57:48] INFO  WEBrick::HTTPServer#start: pid=10172 port=3000


Started GET "/" for 127.0.0.1 at 2018-01-15 10:58:09 +0200
Connecting to database specified by database.yml
Processing by AgencyController#index as HTML
  Rendered agency/index.html.erb within layouts/application (22.8ms)
Completed 500 Internal Server Error in 93ms


Started GET "/" for 127.0.0.1 at 2018-01-15 10:58:10 +0200
Processing by AgencyController#index as */*
  Rendered agency/index.html.erb within layouts/application (3.5ms)
Completed 500 Internal Server Error in 31ms

The entire project can be found here: http://ift.tt/2rbFfIq

I`ve tried with 2 ruby versions: 242 and 250.

Any help is much appreciated.

Also I have tried the solutions provided so far, my guess is it could be the setup I`m using.