After the successful installation of Ubuntu(or other linux distro) on your windows machine, you may encounter a lot many issues setting up the Ruby on Rails project and it could be any or all of the below mentioned one:
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Error: Could not find database.yml file / issue related to postgres In this case check that you have installed postgresql properly or not on your machine first. Once after confirmation, u may still face the same issue then u may have to find 'pg_hba.conf' file and follow the instructions given in this page https://stackoverflow.com/questions/10845998/i-forgot-the-password-i-entered-during-postgres-installation
We may have to replace the word 'peer' everywhere inside 'pg_hba.conf' file with 'trust' and then save it, restart the psql service and then try to start the rails server again. But before that we have to find the location of 'pg_hba.conf' file. This link might be helpful for the same - https://askubuntu.com/questions/256534/how-do-i-find-the-path-to-pg-hba-conf-from