Issue #798 resolved
setup-rhodecode fails when filter-with is enabled in [app:main] section in production.ini:
/usr/local/bin/paster setup-rhodecode /srv/rhodecode/production.ini --user=admin --password=admin12 --email@example.com --repos=/srv/rhodecode/repos The section 'main' is not the application (probably a filter). You should add #section_name, where section_name is the section that configures your application
Simply commenting filter-with out solves the issue.
Note that /usr/local/bin/paster serve /srv/rhodecode/production.ini works ok with filter-with enabled