I also faced this issue on my Macbook Air M2 Chip. tried almost all the solution available around this. including rosetta 2, ibrew etc etc. but nothing worked.

utlimately I got to know which I did not find anywhere instead of using therubyracer gem use mini_racer which is compatible with silicon chips.

In my project I analysed that we are not using therubyracer gem at all, it was available sicne beginnning of the project and we were just installing it.

So two option, either remove therubyracer or replace it with mini_racer gem.

I hope this may help some of you who wants to install on macbook air m2 or m1 chip.