As Alex mentions in his comment, I need to configure solid_cable for my development environment too.

Followed this tutorial and the issue is solved now. https://mileswoodroffe.com/articles/super-solid-cable

Steps:

• Install solid_cable

bundle add solid_cable
bin/rails solid_cable:install

• Configure

# Update config/cable.yml
development:
  adapter: solid_cable
  connects_to:
    database:
      writing: cable
  polling_interval: 0.1.seconds
  message_retention: 1.day

# Update config/database.yml, add cable section for development env.
development:
  primary:
    <<: *default
    database: storage/development.sqlite3
  cable:
    <<: *default
    database: storage/development_cable.sqlite3
    migrations_paths: db/cable_migrate

• Initialize the database with rails db:prepare