Solved,
I was deploying on firefox 39 as package.json states
"engines": {
"firefox": ">=38.0a1",
"fennec": ">=38.0a1"
},
when I installed firefox 39 I have upgraded from firefox 7.
So I uninstalled firefox 39, check the folder "mozilla firefox" was not
in programs folder and I reinstalled firefox 39 and deployed the add-on successfully.
Maybe the upgrade scenarios are not supported by add-ons?
The add-on was very simple, just the cut and paste of the mdn tutorial here
https://developer.mozilla.org/en-US/Add-ons/SDK/Tutorials/Getting_Started_%28jpm%29Thanks