Reproduce apparent Bundler issue

reproduce-bundler-issue.sh

#!/bin/bash

set -euo pipefail

ISSUE=bundler-path-source-conflict
TMPDIR="/tmp/${ISSUE}"

mkdir -p "$TMPDIR"
cd "$TMPDIR"

mkdir -p local_gem

cat > local_gem/Gemfile <<EOF
gemspec
EOF

cat > local_gem/local_gem.gemspec <<EOF
Gem::Specification.new do |s|
  s.name    = "local_gem"
  s.version = "0.0.1"
end
EOF

cat > Gemfile <<EOF
source "https://rubygems.org"
gem "local_gem", path: "local_gem"
gem "hello-world", source: "https://rubygems.org"
EOF

bundle install

# Expect output:
#   hello
# Actual output:
#   Could not find hello-world-1.2.0 in any of the sources
#   Run `bundle install` to install missing gems.

bundle exec ruby -e 'puts "hello"'

You could replace irb with ruby -e 'puts :ok' as the test case, to further isolate the reproduction.