Found this information which perhaps explains the issue:
A recent version of Pandoc (>= 1.12.3) is required to use the rmarkdown package. RStudio also automatically includes this so you do not need to download Pandoc if you plan to use rmarkdown from the RStudio IDE.
If not using the RStudio IDE, you’ll need to install Pandoc for your platform.
You probably need to install a system version of pandoc if you are planning to render outside of RStudio.