Setting cache_classes to false results in blank pages

Have anyone else stumbled upon this weird behavior? Setting the
config.cache_classes = false for development env causes rails to
return responses with totally empty content, headers seem to work ok.
It does not matter what the controller returns, even a simple :text =>
"OK" will result in empty page.

I'm using rails 3.2.2 and ruby 1.9.3.

It probably has something to do with the overall gem configuration
etc. because testing with out of the box app "rails new testapp" with
one generated scaffold seems to work ok.

Here is the gemfile: