I tried installing the bundler gem but that didn’t change anything.
So if by this you mean something different or there is something
additional I need to do please specify.
Oops, sorry, totally looked over that part.
The most likely scenario is that you have multiple Ruby interpreters
installed on your system. Let’s call them Ruby A and Ruby B. When you
type ‘gem install bundler’ you probably installed Bundler into Ruby A,
but you told Phusion Passenger to use Ruby B and so the gem
installation didn’t have any effect on Phusion Passenger. Tell Phusion
Passenger to use Ruby A, or install Bundler into Ruby B.
Or, you installed Bundler without ‘sudo’ and caused it to be installed
into $HOME instead of system-wide.