"Bundle update rails" is failing with multiple dependencies error

Question

I'm using following configuration inside the project directory:

Ruby version ruby 3.1.4p223 (2023-03-30 revision 957bb7cb81) [i386-mingw32] Rails version 4.2.5 Gem version 3.3.26 Bundler version 1.16.0

Here is the error trace:

Bundler could not find compatible versions for gem "actionmailer":
  In Gemfile:
    exception_notification was resolved to 4.1.0, which depends on
      actionmailer (>= 3.0.4)

    rails (= 4.2.5) was resolved to 4.2.5, which depends on
      actionmailer (= 4.2.5)

    simple_token_authentication (~> 1.0) was resolved to 1.9.1, which depends on
      actionmailer (>= 3.2.6, < 5)

Bundler could not find compatible versions for gem "actionpack":
  In Gemfile:
    haml-rails was resolved to 0.9.0, which depends on
      actionpack (>= 4.0.1)

    lograge was resolved to 0.3.2, which depends on
      actionpack (>= 3)

    rails (= 4.2.5) was resolved to 4.2.5, which depends on
      actionpack (= 4.2.5)

    redis-rails was resolved to 4.0.0, which depends on
      redis-actionpack (~> 4) was resolved to 4.0.0, which depends on
        actionpack (~> 4)

    simple_form was resolved to 3.1.0, which depends on
      actionpack (~> 4.0)

    simple_token_authentication (~> 1.0) was resolved to 1.9.1, which depends on
      actionpack (>= 3.2.6, < 5)

Bundler could not find compatible versions for gem "activemodel":
  In Gemfile:
    globalize (~> 4.0.2) was resolved to 4.0.3, which depends on
      activemodel (>= 4.0.0, < 5)

    paperclip-meta was resolved to 1.2.0, which depends on
      paperclip (>= 3.0.2, < 5.0) was resolved to 4.2.1, which depends on
        activemodel (>= 3.0.0)

    rails (= 4.2.5) was resolved to 4.2.5, which depends on
      activemodel (= 4.2.5)

    rails-observers was resolved to 0.1.2, which depends on
      activemodel (~> 4.0)

Bundler could not find compatible versions for gem "activerecord":
  In Gemfile:
    activerecord-import was resolved to 0.8.0, which depends on
      activerecord (>= 3.0)

    activerecord-nulldb-adapter was resolved to 0.3.8, which depends on
      activerecord (>= 2.0.0)

    activerecord-postgis-adapter was resolved to 2.2.2, which depends on
      activerecord (>= 4.0.0, < 4.2.0)

    annotate (>= 2.5.0) was resolved to 2.6.8, which depends on
      activerecord (>= 3.2, <= 4.3)

    ar-octopus was resolved to 0.8.5, which depends on
      activerecord (>= 3.2.0)

    delayed_job_active_record was resolved to 4.0.3, which depends on
      activerecord (>= 3.0, < 5.0)

    globalize (~> 4.0.2) was resolved to 4.0.3, which depends on
      activerecord (>= 4.0.0, < 5)

    rails (= 4.2.5) was resolved to 4.2.5, which depends on
      activerecord (= 4.2.5)

    activerecord-postgis-adapter was resolved to 2.2.2, which depends on
      rgeo-activerecord (~> 1.2) was resolved to 1.2.0, which depends on
        activerecord (~> 4.0)

Bundler could not find compatible versions for gem "activesupport":
  In Gemfile:
    ar-octopus was resolved to 0.8.5, which depends on
      activesupport (>= 3.2.0)

    exception_notification was resolved to 4.1.0, which depends on
      activesupport (>= 3.0.4)

    haml-rails was resolved to 0.9.0, which depends on
      activesupport (>= 4.0.1)

    jbuilder was resolved to 2.2.16, which depends on
      activesupport (>= 3.0.0, < 5)

    lograge was resolved to 0.3.2, which depends on
      activesupport (>= 3)

    rails (= 4.2.5) was resolved to 4.2.5, which depends on
      activesupport (= 4.2.5)

    redis-rails was resolved to 4.0.0, which depends on
      redis-activesupport (~> 4) was resolved to 4.0.0, which depends on
        activesupport (~> 4)

Bundler could not find compatible versions for gem "json":
  In Gemfile:
    aws-sdk (= 1.51.0) was resolved to 1.51.0, which depends on
      json (~> 1.4)

    capybara-webkit was resolved to 1.5.1, which depends on
      json

    httparty was resolved to 0.13.5, which depends on
      json (~> 1.8)

    raddocs was resolved to 0.4.0, which depends on
      json (~> 1.8, >= 1.8.1)

    rspec_api_documentation (~> 4.1.0) was resolved to 4.1.0, which depends on
      json (~> 1.4, >= 1.4.6)

    uglifier was resolved to 2.7.1, which depends on
      json (>= 1.8.0)

1. I tried manually changing the gem versions of few file in the gemfile, but still they are showing up in error trace.
2. I also tried "bundle update" command but when I ran it, my command prompt stuck in kind of infinite lines.
3. I tried removing gemfile.lock file and then run "bundle update" command then my code gives error regarding bundler. The bundler version which was mentioned in gemfile.lock is 1.16.0 while, the bundler installed in my system is 2.3.x version. I don't know, how I should resolve this.