The cmd go mod tidy looks for the most recent go version that the packages we import use and updates go.mod accordingly. This is why we see go 1.23 revert to go 1.23.0 as mentioned here.
The reason is that when we import a module then we are forced to use a more recent Go version than the one in the
go.modfile, for example we depend ongolang.org/x/tools v0.25.0which uses Go version 1.22.0, so we need to specify at least 1.22.0 ourselves.
I went through each package and identified those using go 1.23.0. I then replaced them with the version that uses go 1.xx like 1.19. After that, I ran go mod tidy and then ignite chain serve, and the error resolved.