Rails Rspec errors on Github actions

I keep getting errors with RSpec on Github Actions. Not sure what's going on. I'm on Rails 7 and Ruby 3.

Locally Rspec runs fine. I'm new to Github actions and have been fumbling around with it for a few hours now. It seems like an environment issue where Rails isn't loaded correctly but I'm not sure where the problem could be. Does anyone have a working Github actions example with Rails 7, Ruby 3 and RSpec?

Here's my github actions config:

# This workflow uses actions that are not certified by GitHub.  They are
# provided by a third-party and are governed by separate terms of service,
# privacy policy, and support documentation.
#
# This workflow will install a prebuilt Ruby version, install dependencies, and
# run tests and linters.
name: "Ruby on Rails CI"
on:
  push:
    branches: [ "main" ]
  pull_request:
    branches: [ "main" ]

jobs:
  test:
    runs-on: ubuntu-latest
    services:
      postgres:
        image: postgres:14-alpine
        ports:
          - "5432:5432"
        env:
          POSTGRES_DB: starter_rails_api_test
          POSTGRES_USER: rails
          POSTGRES_PASSWORD: password
        options: >-
          --health-cmd pg_isready
          --health-interval 10s
          --health-timeout 5s
          --health-retries 5

    env:
      RAILS_ENV: test
      DATABASE_URL: "postgres://rails:password@localhost:5432/starter_rails_api_test"
    steps:
      - name: Checkout code
        uses: actions/checkout@v3
      # Add or replace dependency steps here
      - name: Install Ruby and gems
        uses: ruby/setup-ruby@v1
        with:
          bundler: default
          # bundler-cache: true
      - name: Install gems
        run: bin/bundle install
      # Add or replace database setup steps here
      - name: Create database tables
        run: bin/rails db:create
      - name: Set up database schema
        run: bin/rails db:schema:load
      # Add or replace test runners here
      - name: Run tests
        run: bin/bundle exec rspec spec

  lint:
    runs-on: ubuntu-latest
    steps:
      - name: Checkout code
        uses: actions/checkout@v3
      - name: Install Ruby and gems
        uses: ruby/setup-ruby@v1
        with:
          bundler-cache: true
      # Add or replace any other lints here
      # - name: Security audit dependencies
      #   run: bin/bundler-audit --update
      # - name: Security audit application code
      #   run: bin/brakeman -q -w2
      - name: Lint Ruby files
        run: bin/bundle exec rubocop --parallel

Output:

Run bin/bundle exec rspec spec
  

An error occurred while loading ./spec/models/widget_spec.rb.
Failure/Error: rescue_from ActiveModel::ValidationError, with: ->(e) { handle_validation_error(e) }

NameError:
  uninitialized constant ActiveModel::ValidationError

    rescue_from ActiveModel::ValidationError, with: ->(e) { handle_validation_error(e) }
                           ^^^^^^^^^^^^^^^^^
  Did you mean?  ActiveModel::Validator
# ./app/controllers/application_controller.rb:21:in `<class:ApplicationController>'
# ./app/controllers/application_controller.rb:3:in `<top (required)>'
# ./config/environment.rb:7:in `<top (required)>'
# ./spec/rails_helper.rb:5:in `require'
# ./spec/rails_helper.rb:5:in `<top (required)>'
# ./spec/models/widget_spec.rb:3:in `require'
# ./spec/models/widget_spec.rb:3:in `<top (required)>'

An error occurred while loading ./spec/requests/api/v1/widgets_spec.rb.
Failure/Error: require File.expand_path('../config/environment', __dir__)

FrozenError:
  can't modify frozen Array: ["/home/runner/work/starter-rails-api/starter-rails-api/app/controllers", "/home/runner/work/starter-rails-api/starter-rails-api/app/controllers/concerns", "/home/runner/work/starter-rails-api/starter-rails-api/app/lib", "/home/runner/work/starter-rails-api/starter-rails-api/app/models", "/home/runner/work/starter-rails-api/starter-rails-api/app/models/concerns", "/home/runner/work/starter-rails-api/starter-rails-api/app/serializers"]
# ./config/environment.rb:7:in `<top (required)>'
# ./spec/rails_helper.rb:5:in `<top (required)>'
# ./spec/requests/api/v1/widgets_spec.rb:3:in `<top (required)>'

An error occurred while loading ./spec/routing/api/v1/widgets_routing_spec.rb.
Failure/Error: require File.expand_path('../config/environment', __dir__)

FrozenError:
  can't modify frozen Array: ["/home/runner/work/starter-rails-api/starter-rails-api/app/controllers", "/home/runner/work/starter-rails-api/starter-rails-api/app/controllers/concerns", "/home/runner/work/starter-rails-api/starter-rails-api/app/lib", "/home/runner/work/starter-rails-api/starter-rails-api/app/models", "/home/runner/work/starter-rails-api/starter-rails-api/app/models/concerns", "/home/runner/work/starter-rails-api/starter-rails-api/app/serializers"]
# ./config/environment.rb:7:in `<top (required)>'
# ./spec/rails_helper.rb:5:in `<top (required)>'
# ./spec/routing/api/v1/widgets_routing_spec.rb:3:in `<top (required)>'

Finished in 0.00006 seconds (files took 1.3 seconds to load)
0 examples, 0 failures, 3 errors occurred outside of examples

Error: Process completed with exit code 1.

Fiddled around a lot with the github actions config. No luck. Always getting errors.