After an entire day of shuting down and lifting servers up I made everything working.
Things I learned from journey today is that you should never give up no matter how painful it looks. I wanted to brake my desktop and my macbook a couple of times, you should also take brakes so your brain can chill off.
I had a few obvious mistakes now that I look back that I made, like not setting correct railse_secret. One huge one is that when I provisioned the server it did not install rails automatically so that was a huge problem as well. Imagine having everything set up like postgres, ngnix etc and finding out that rails is not installed haha.
What I was trying to deploy was my blog, that I will share once I am sure everything is cool and ready for public. Will probably end up shutting down this server as well so I can start with a fresh one and an updated chef that installs rails and sets secret key as well.
Anyways moral of the story is NEVER GIVE UP. Period. Off to play some basketball since my brain is begging me to stop typing.