Rails 4 - Gem::LoadError: Specified 'mysql2' for database adapter, but the gem is not loaded

In my gemfile I have:

gem 'mysql2'

My database.yml is as follows:

default: &default
  adapter: mysql2
  database: <%= ENV['db_name'] %>
  username: <%= ENV['db_user'] %>
  password: <%= ENV['db_pass'] %>
  host:     <%= ENV['db_host'] %>
  pool: 32
  socket:   <%= ENV['socket'] %>

development:
  <<: *default

production:
  <<: *default

I've run both bundle update and bundle install and my Gemfile.lock shows mysql2.

However when I run rake db:migrate I get this on both my computer and on the staging server:

myproject.com(master)$ rake db:migrate
WARNING: Use strings for Figaro configuration. 10000012508 was converted to "10000012508".
WARNING: Use strings for Figaro configuration. 860526407370038 was converted to "860526407370038".
rake aborted!
Gem::LoadError: Specified 'mysql2' for database adapter, but the gem is not loaded. Add `gem 'mysql2'` to your Gemfile (and ensure its version is at the minimum required by ActiveRecord).
.....

Just to make sure there wasn't a bad version of mysql2 or something, I did bundle clean --force and ran bundle install and bundle update again and when I run gem list I see mysql2 (0.4.0) and no other versions.

Any ideas would be most appreciated.

---

SOLUTION

It's currently an issue with Rails 4.1.x and 4.2.x, per this bug report, it will be fixed in the next release of rails 4.2.x (credit to dcorr in comments for the link).

In the mean time you can fix by doing downgraded to version 0.3.18 of mysql2 by adding this line to your gemfile:

gem 'mysql2', '~> 0.3.18'

Just a further update - the solution in the question is correct.

The 4th comment is worth taking note of:

This isn't a bug with mysql2, it's a problem with the requirement in the ActiveRecord adapter: http://github.com/rails/rails/issues/21544. This is fixed in rails master: https://github.com/rails/rails/commit/5da5e3772c32593ecf2f27b8865e81dcbe3af692

I was able to tie Rails 4.2.4 to the 4-2-stable branch and get it working with the latest mysql2:

gem 'rails', '~> 4.2.4', git: "git://github.com/rails/rails.git", branch: '4-2-stable'
gem 'tzinfo-data', platforms: [:mingw, :mswin, :x64_mingw] #-> Rails 4.1+

#DB
gem 'mysql2'