Unable to start Sync Gateway using docker-compose up command line tool

I am using docker-compose to run couchbase server and sync gateway.
I am following instructions as described in README.md.

Couchbase is running fine. I was able to start and configure it.
However Sync Gateway throwing an error:

WARNING: Error from Incr in sequence allocator (0) - attempt (3/3): EOF -- db.(*sequenceAllocator).incrWithRetry() at sequence_allocator.go:88

And then

FATAL: Error opening database: Unable to increment sequence: EOF -- rest.RunServer() at config.go:758

Full logs:

docker-compose up
Starting couchbaseserversyncgateway_sync-gateway_1 ...
couchbaseserversyncgateway_couchbase-server_1 is up-to-date
Starting couchbaseserversyncgateway_sync-gateway_1 ... done
Attaching to couchbaseserversyncgateway_couchbase-server_1, couchbaseserversyncgateway_sync-gateway_1
sync-gateway_1 | 2017-12-21T22:16:32.095Z Enabling logging: [HTTP+]
sync-gateway_1 | 2017-12-21T22:16:32.096Z ==== Couchbase Sync Gateway/1.4.0(2;9e18d3e) ====
sync-gateway_1 | 2017-12-21T22:16:32.096Z requestedSoftFDLimit < currentSoftFdLimit (5000 < 1048576) no action needed
sync-gateway_1 | 2017-12-21T22:16:32.096Z Opening db /db as bucket "default", pool "default", server http://couchbase-server:8091
sync-gateway_1 | 2017-12-21T22:16:32.097Z Opening Couchbase database default on http://couchbase-server:8091 as user "default"
sync-gateway_1 | _time=2017-12-21T22:16:32.118+00:00 _level=INFO _msg= Trying with selected node 0
sync-gateway_1 | _time=2017-12-21T22:16:32.120+00:00 _level=INFO _msg= Trying with http://172.19.0.3:8091/pools/default/bucketsStreaming/default
couchbase-server_1 | Starting Couchbase Server -- Web UI available at http://:8091 and logs available in /opt/couchbase/var/lib/couchbase/logs
couchbase-server_1 | Starting Couchbase Server -- Web UI available at http://:8091 and logs available in /opt/couchbase/var/lib/couchbase/logs
couchbase-server_1 | Starting Couchbase Server -- Web UI available at http://:8091 and logs available in /opt/couchbase/var/lib/couchbase/logs
couchbase-server_1 | Starting Couchbase Server -- Web UI available at http://:8091 and logs available in /opt/couchbase/var/lib/couchbase/logs
sync-gateway_1 | _time=2017-12-21T22:16:32.130+00:00 _level=INFO _msg=Got new configuration for bucket default
sync-gateway_1 | _time=2017-12-21T22:16:32.293+00:00 _level=INFO _msg= Trying with selected node 0
sync-gateway_1 | 2017-12-21T22:16:32.440Z WARNING: Error from Incr in sequence allocator (0) - attempt (1/3): EOF -- db.(*sequenceAllocator).incrWithRetry() at sequence_allocator.go:88
sync-gateway_1 | 2017-12-21T22:16:32.453Z WARNING: Error from Incr in sequence allocator (0) - attempt (2/3): EOF -- db.(*sequenceAllocator).incrWithRetry() at sequence_allocator.go:88
sync-gateway_1 | 2017-12-21T22:16:32.466Z WARNING: Error from Incr in sequence allocator (0) - attempt (3/3): EOF -- db.(*sequenceAllocator).incrWithRetry() at sequence_allocator.go:88
sync-gateway_1 | 2017-12-21T22:16:32.476Z WARNING: Too many unsuccessful Incr attempts in sequence allocator - giving up (0): EOF -- db.(*sequenceAllocator).incrWithRetry() at sequence_allocator.go:94
sync-gateway_1 | 2017-12-21T22:16:32.476Z WARNING: Error from Incr in _reserveSequences(0): Unable to increment sequence: EOF -- db.(*sequenceAllocator)._reserveSequences() at sequence_allocator.go:65
sync-gateway_1 | 2017-12-21T22:16:32.476Z FATAL: Error opening database: Unable to increment sequence: EOF -- rest.RunServer() at config.go:758
couchbaseserversyncgateway_sync-gateway_1 exited with code 1

Start with compose/couchbase-server-sync-gateway/README.md and reproduce the failure with docker-compose up. Then inspect the sequence allocator reference at sequence_allocator.go:88 and the database-opening path at config.go:758 alongside the container logs. Done means identifying the startup or configuration cause and confirming that Sync Gateway starts successfully with the documented compose setup.