Using a custom path while using system gems is unsupported - ruby

Question

Gitlab CI bundle install giving unexpected error. It was working perfectly fine till yesterday evening.
Referred to below solution but issue still persist:
bundler: Using a custom path while using system gems is unsupported
stages:
- test
cache:
key: test-app-cache
paths:
- vendor/
variables:
BUNDLE_DISABLE_SHARED_GEMS: "true"
BUNDLE_PATH__SYSTEM: "false"
deploy:
stage: test
image: "ruby:2.5"
script:
- gem update system
- gem install bundler -v 2.0.1
- bundle config --global disable_shared_gems true
- bundle install --path vendor
Skipping Git submodules setup
Checking cache for test-app-cache-9...
FATAL: file does not exist
Failed to extract cache
$ gem update system
Updating installed gems
Nothing to update
$ gem install bundler -v 2.0.1
Successfully installed bundler-2.0.1
1 gem installed
$ bundle config --global disable_shared_gems true
You have a bundler environment variable for disable_shared_gems set to "true". This will take precedence over the global value you are setting
$ bundle install --path vendor
Using a custom path while using system gems is unsupported.
path:
Set for your local app (/usr/local/bundle/config): "vendor"
Set via BUNDLE_PATH: "/usr/local/bundle"
path.system:
Set via BUNDLE_PATH__SYSTEM: true
disable_shared_gems:
Set via BUNDLE_DISABLE_SHARED_GEMS: true
Set for the current user (/root/.bundle/config): true
ERROR: Job failed: command terminated with exit code 1