Psych & Ruby 3 incompatibility

[VictorMotogna]

I am upgrading a Rails project to Ruby 3.1.2, from 2.6.6. I initially ran into this problem, but fixed it with adding gem 'psych', '< 4' into the Gemfile. I should note that an answer there mentioned downgrading to Ruby 3.0.3, but that does not fix my issue.

After adding that, the project worked fine regarding Psych. Unfortunately, when trying to commit/push, the overcommit hook returns this error:

/.rbenv/versions/3.1.2/lib/ruby/3.1.0/bundler/runtime.rb:309:in 'check_for_activated_spec!': You have already activated psych 4.0.4, but your Gemfile requires psych 3.3.2. Prepending 'bundle exec' to your command may solve this. (Gem::LoadError)

I also tried changing overcommit's version and got this error: Since "psych" is a default gem, you can either remove your dependency on it or try updating to a newer version of bundler that supports psych as a default gem.

Versions

ruby 3.1.2p20
psych (3.3.2)
overcommit (0.58.0)