Selenium WebDriver Chrome timeout and invalid URL - ruby-on-rails

Question

I am using Selenium Webdriver Chrome initialized in my Rails app as follows
host=XXX
port=XXX
Capybara.register_driver :selenium_chrome do |app|
options = Selenium::WebDriver::Chrome::Options.new
options.add_argument("--proxy-server=#{host}:#{port}")
options.add_argument("--headless") # Remove this option to run on Chrome browser
Capybara::Selenium::Driver.new( app,
browser: :chrome,
options: options
)
end
However, it is timing out always when I run a spec giving this error
Net::ReadTimeout upon running the command visit url
URI.parse(current_url) returns #<URI::Generic data:,> which looks incorrect and probably the reason why it is timing out. I looked into the Selenium Webdriver gem and added debugging to see how the request is fetched for this command but for some reason it is not stopping at the pry when the command is get_current_url
Why does current_url look incorrect and why would it not stop for the command get_current_url ?
EDIT: the url is obtained from here and returns the following locally
[6] pry(Selenium::WebDriver::Remote::Bridge)> Remote::OSS::Bridge.new(capabilities, bridge.session_id, **opts).url
=> "data:,"
Adding a pry to the URL method doesn't stop, so wondering how it is obtaining the value.
Ruby: ruby 2.7.6p219 (2022-04-12 revision c9c2245c0a) [x86_64-darwin20]
Selenium-Webdriver: 3.142.7