Rails 6 while running sidekiq database configuration does not specify adapter

Recently we started migrating our codebase from rails 5 to rails 6. Everything seems to work fine except sidekiq. Whenever we tried to run sidekiq in production mode it always throws an error database configuration does not specify adapter. I am pretty sure that we have mentioned an adapter in database.yml. Can someone please help to resolve this issue?

For reference

Rails 6.0.3.4

Sidekiq 6.1.2

Ruby 2.7.1p83

databsae.yml file

default: &default
  adapter: postgresql
  pool: <%= ENV['DATABASE_POOL'] %>
  timeout: 5000
  database: anajmandi
  
development:
  primary:
    <<: *default
    url: <%= ENV['DATABASE_URL'] %>
    multidb:
      fallback: true
  follower: 
    <<: *default
    url: <%= ENV['DATABASE_SLAVE_URL'] %>
    replica: true
    multidb:
      fallback: true

test:
  <<: *default
  database: db/test.sqlite3

production:
  primary:
    <<: *default
    url: <%= ENV['DATABASE_URL'] %>
    multidb:
      fallback: true
  follower: 
    <<: *default
    url: <%= ENV['DATABASE_SLAVE_URL'] %>
    replica: true
    multidb:
      fallback: true

and sidekiq.rb file

# typed: strict
if Rails.env.production?
  # three unicorns = 3 connections
  Sidekiq.configure_client do |config|
    config.redis = { :size => 1 }
  end

  Sidekiq.configure_server do |config|
    config.redis = { url: ENV['REDIS_URL'], size: 22 }

    Rails.application.config.after_initialize do
      Rails.logger.info("DB Connection Pool size for Sidekiq Server before disconnect is: #{ActiveRecord::Base.connection.pool.instance_variable_get('@size')}")
      ActiveRecord::Base.connection_pool.disconnect!

      ActiveSupport.on_load(:active_record) do
        config = Rails.application.config.database_configuration[Rails.env]
        config['reaping_frequency'] = ENV['DATABASE_REAP_FREQ'] || 10 # seconds
        config['pool'] = ENV['WORKER_DB_POOL_SIZE'] || Sidekiq.options[:concurrency]
        ActiveRecord::Base.establish_connection(config)

        Rails.logger.info("DB Connection Pool size for Sidekiq Server is now: #{ActiveRecord::Base.connection.pool.instance_variable_get('@size')}")
      end
    end
  end

end

and this is the error stack trace on running command bundle exec sidekiq -e production -C config/sidekiq.yml

DB Connection Pool size for Sidekiq Server before disconnect is: 5
database configuration does not specify adapter
/Users/yadusingla/.rvm/gems/ruby-2.7.1/gems/activerecord-6.0.3.4/lib/active_record/connection_adapters/connection_specification.rb:161:in `spec'
/Users/yadusingla/.rvm/gems/ruby-2.7.1/gems/activerecord-6.0.3.4/lib/active_record/connection_adapters/abstract/connection_pool.rb:1052:in `establish_connection'
/Users/yadusingla/.rvm/gems/ruby-2.7.1/gems/activerecord-6.0.3.4/lib/active_record/connection_handling.rb:51:in `establish_connection'
/Users/yadusingla/.rvm/gems/ruby-2.7.1/gems/activerecord-import-1.0.6/lib/activerecord-import/import.rb:250:in `establish_connection'
/Users/yadusingla/spars/procol-backend/config/initializers/sidekiq.rb:19:in `block (3 levels) in <top (required)>'
/Users/yadusingla/.rvm/gems/ruby-2.7.1/gems/activesupport-6.0.3.4/lib/active_support/lazy_load_hooks.rb:71:in `class_eval'
/Users/yadusingla/.rvm/gems/ruby-2.7.1/gems/activesupport-6.0.3.4/lib/active_support/lazy_load_hooks.rb:71:in `block in execute_hook'
/Users/yadusingla/.rvm/gems/ruby-2.7.1/gems/activesupport-6.0.3.4/lib/active_support/lazy_load_hooks.rb:61:in `with_execution_control'
/Users/yadusingla/.rvm/gems/ruby-2.7.1/gems/activesupport-6.0.3.4/lib/active_support/lazy_load_hooks.rb:66:in `execute_hook'
/Users/yadusingla/.rvm/gems/ruby-2.7.1/gems/activesupport-6.0.3.4/lib/active_support/lazy_load_hooks.rb:43:in `block in on_load'
/Users/yadusingla/.rvm/gems/ruby-2.7.1/gems/activesupport-6.0.3.4/lib/active_support/lazy_load_hooks.rb:42:in `each'
/Users/yadusingla/.rvm/gems/ruby-2.7.1/gems/activesupport-6.0.3.4/lib/active_support/lazy_load_hooks.rb:42:in `on_load'