Check your Capfile if you really use gems: install from Capistrano. Apparently, the way to do this is to make sure that you are in the correct directory inside when starting Capistrano.
namespace :gems do desc "Install gems" task :install, :roles => :app do run "cd #{current_path} && #{sudo} rake RAILS_ENV=production gems:install" end end
You can also always specify a rakefile using the -f [FILE] option before the rake command.
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