Rails 7 depends on activemodel 7.0.0, and active interaction requires activemodel (>= 5, < 7).
Here's the bundler output when upgrading rails with active interaction installed:
Bundler could not find compatible versions for gem "activemodel":
In Gemfile:
active_interaction (~> 4.0) was resolved to 4.0.6, which depends on
activemodel (>= 5, < 7)
rails (= 7.0.0) was resolved to 7.0.0, which depends on
activemodel (= 7.0.0)
Rails 7 depends on activemodel 7.0.0, and active interaction requires activemodel (>= 5, < 7).
Here's the bundler output when upgrading rails with active interaction installed: