Can't build libxml-ruby, unknown type name xmlSAXHandler

I’m trying to setup a Ruby dev environment with a shell.nix file:

with (import <nixpkgs> {});
let
  gems = bundlerEnv {
    ruby = ruby_3_2;
    name = "gems-for-ruby-template";
    gemdir = ./.;
    extraConfigPaths = [ "${./.}/.ruby-version" ];
  };
in mkShell { 
  packages = [ 
    bundix
    
    gems 
    gems.wrappedRuby
  ]; 

}

but I’m getting the following error:

direnv: loading /data/code/newstore/middleware/.envrc
direnv: using nix
error: builder for '/nix/store/8wwlx9ccxjk7fdwg32jj9nxlbky7l39y-ruby3.2-libxml-ruby-4.0.0.drv' failed with exit code 1;
       last 10 log lines:
       > In file included from ruby_libxml.h:29:
       > ruby_xml_sax2_handler.h:6:8: error: unknown type name 'xmlSAXHandler'
       >     6 | extern xmlSAXHandler rxml_sax_handler;
       >       |        ^~~~~~~~~~~~~
       > make: *** [Makefile:248: libxml.o] Error 1
       >
       > make failed, exit code 2
       >
       > Gem files will remain installed in /nix/store/dbh8apjiv413m6i0m1ld2j2d54dims1q-ruby3.2-libxml-ruby-4.0.0/lib/ruby/gems/3.2.0/gems/libxml-ruby-4.0.0 for inspection.
       > Results logged to /nix/store/dbh8apjiv413m6i0m1ld2j2d54dims1q-ruby3.2-libxml-ruby-4.0.0/lib/ruby/gems/3.2.0/extensions/x86_64-linux/3.2.0/libxml-ruby-4.0.0/gem_make.out
       For full logs, run 'nix-store -l /nix/store/8wwlx9ccxjk7fdwg32jj9nxlbky7l39y-ruby3.2-libxml-ruby-4.0.0.drv'.
error: 1 dependencies of derivation '/nix/store/rcadbhq4vnd70mmnsz1k8ndbz3ryy2vy-gems-for-ruby-template.drv' failed to build
error: 1 dependencies of derivation '/nix/store/hvwr6v0prx3dh9kwmly9r4n676x5sd93-nix-shell-env.drv' failed to build

I’ve tried adding various dependent packages such as libxml2, libiconv, etc to packages but I get the same error.

Anyone seen this issue before?