Editable (content tools) not working

I installed and configured Editable along with the Private plugin and I'm able to login from 'localhost:8000/login' and it takes me to the home page after logging in. The home page is html but saved as default.md, so not sure of that matters. Anyways I do not get conttentools edit icons at all on the home page. I made sure to follow all the steps but maybe I'm missing something? Also, Is this the right configuration for editable.yaml:

enabled: true
active_admin: false
editor: contenttools
editable_self: true

Also if that's correct what else can I check to make this work?

Your config file seems okay if I fill in the missing underscores. Since you didn't embed the YAML as code (see the question mark top right when you're writing a post) the underscores are interpreted as the start and ending of italic. This looks better:

enabled: true
active_admin: false
editor: contenttools
editable_self: true

Anyway, to make sure the file default.md does contain HTML only open it in a text editor. ContentTools does not like a mix of markdown and HTML and recently there was an issue in which case the problem was due to too complex HTML. That is too complex for ContentTools to handle.

It appears that ContentTools requires simple HTML content much like standard Grav content in markdown. Simple markup like headings, bold text etc. work fine but using extra div elements is not a good idea.