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Is it possibly a problem with our set-up or are we missing something?
I don't have time to investigate this more right now, but your example worked out of the box for me with transformers-0.3.0.0 (and scotty-0.9.1). But upgrading transformers to 0.4.2.0, yields the same error as you. A temporary fix is to ghc-pkg hide transformers-0.4.2.0. Thus setting transformers == 0.3.0.0 in your cabal file and use a sandbox could perhaps be a work-around for now.
Hope this helps regardless of how hackish it feels, Dan