Error: Individual stylesheets must be in the sass directory

My CSS doesn't work. Here is my terminal log:

$ gulp sass
Using gulpfile ~/dev/myproject/gulpfile.js
Starting 'sass-ionic'...
Starting 'sass-myproject'...
Individual stylesheets must be in the sass directory.

{ [Error: Compass failed]
  message: 'Compass failed',
  fileName: '/Users/me/dev/myproject/scss/main.scss',
  showStack: false,
  showProperties: true,
  plugin: 'gulp-compass',
  __safety: { toString: [Function] } }
Finished 'sass-ionic' after 634 ms

I am using Ionic Framework.

The funny part is that I have two computers with pretty much same setup and the other works fine and the other gives the error above. I'm using git so the both projects have identical files and folder structure.

EDIT: After downgrading compass:

Here is what I get after 'gulp sass':

Starting 'sass-ionic'...
Starting 'sass-murikka'...
Finished 'sass-ionic' after 614 ms
  warning Webkit only supports pixels for the start and end stops for radial gradients. Got: 100%
  warning Webkit only supports pixels for the start and end stops for radial gradients. Got: 100%
identical ./www/css/main.css 

Finished 'sass-murikka' after 843 ms
Starting 'sass'...
Finished 'sass' after 13 μs

On the other computer I get exactly the same output except

identical ./www/css/main.css

-->

overwrite ./www/css/main.css

Check if Ruby is installed in your computer. I had the same error and installing ruby solved the problem

For anybody stumbling across this bug on a Windows environment, first check your config paths to ensure they're not absolute or some other nonsense.

Next, make sure you use the correct case with your directories when navigating to your project directory. Since Windows is case-insensitive, it will allow you to cd myproject/source/ when it's actually MyProject/source/. gulp-compass will give this error if you run your gulp task using just cd myproject/source/ lower case.

Check your terminal CWD and make sure it matches the case: $ MyProject/source/ > gulp sass or some such.