Hey, hopefully you figured this out already but I was stuck on this
issue as well, and the solution's pretty simple. You have to make sure
that the "database.yml" file is in the git or scm tool repository that
you're using.
I think capistrano is trying to pull the database.yml file from the
repository and not any physical location on the deployment server.
Sometimes when you're working with people you .gitignore the
database.yml file but just make sure you "git add -f" the database.yml
file then commit and push it. Then try cap deploy/cap deploy:update and
hopefully it works!
Good luck and I hope this helps.
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