@Bigside_Tech - Thank you for sharing your solution. I was able to proceed with shopify theme dev because of your suggestion.
This worked for me with the below versions of tools with no admin rights.
I also ensured that all folders with ruby, gem, shopify has been deleted, before reinstalling the version of RUBY that works for me.
node - v18.20.3 (latest is v22.3.0)
shopify cli - 3.62.0 (latest)
npm - 10.7.0 (latest is 10.8.1)
git - 2.45.2.windows.1 (latest)
ruby - Ruby+Devkit 3.0.6-1 (x64) (Latest is Ruby+Devkit 3.3.3-1 (x64) )
gem - 3.2.33 (latest is 3.5.11)