Error on First Running brunch w -s

[bretonio]

After cloning and npm install and bower install and then brunch w -s I get the following.

03 Dec 16:12:01 - info: application started on http://localhost:3333/
/usr/local/lib/node_modules/brunch/lib/fs_utils/file_list.js:224
        if (error) throw new Error(formatError('Reading', error));
                   ^

Error: undefined of Error: ENOENT: no such file or directory, open 'node_modules/handlebars-brunch/node_modules/handlebars/dist/handlebars.runtime.js' failed. 
  at error (/usr/local/lib/node_modules/brunch/lib/fs_utils/file_list.js:224:26)
  at ReadFileContext.callback (/usr/local/lib/node_modules/brunch/node_modules/fcache/index.js:19:23)
  at FSReqWrap.readFileAfterOpen [as oncomplete] (fs.js:359:13)

Yes, handlebars-brunch has no node_modules directory.

Node version 6.5.0 (have tried downgrading with nvm) ...