These are two possible reasons. I assume that you are in development mode and download all the gems.
1. Config
In development mode, files are compiled on demand and cached until any changes are made. You must get the new 3.1 configuration settings set in the correct files, or this may not work as expected.
Check out the Rails tutorial on upgrading .
2. Extensions
Another gets the extensions in the correct order. For scss to be file.css.scss. This tells Sprockets to first parse files as scss, and also have the css extension. If you had .erb at the end - file.css.scss.erb- then erb is processed first, then scss.
, . .