The command to setup the database fails with the following error trace:
Please install the sqlite3 adapter: gem install activerecord-sqlite3-adapter (sqlite3 is not part of the bundle. Add it to Gemfile.)
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Couldn't create database for {"adapter"=>"sqlite3", "database"=>"db/development.sqlite3"}
Please install the sqlite3 adapter: gem install activerecord-sqlite3-adapter (sqlite3 is not part of the bundle. Add it to Gemfile.)
After adding the following line:
gem 'sqlite3'
to the Gemfile the issue is resolved.