Rails 4.2 + Ember => unexpected identifier

I'm following Vic Ramon's tutorial. I tried to use the latest version of Rails and Ember-source and I get the following error when visiting home page: After clicking on link next to error I get this: How can I fix that?

I ran the following commands: rails g ember:bootstrap -n App --javascript-engine coffee rails g ember:install

I removed turbolinks. I also created home controller and an empty view for home#index. Root is set to home#index. Also created following view file:

// app/assets/javascripts/templates/application.js.emblem
h1 Hello World
outlet

Ember gems im using:

Using emblem-source 0.3.18
Using ember-data-source 1.0.0.beta.14.1
Using ember-rails 0.16.1
Using emblem-rails 0.2.2