Turns out the issue is a bug in one of the gems I was using. The gem is called activerecord-postgres-array and the latest bundle install
must have pulled in this bug: https://github.com/tlconnor/activerecord-postgres-array/issues/37
I have updated my gemfile to use version 0.0.8 of this gem. The update works fine now.
Gemfile:
gem 'activerecord-postgres-array', '0.0.8'