Shopify theme dev cant find gems, bundle installing them does not correct issue

Question

I cloned the shopify Dawn theme and when i:

cd Dawn
shopify theme dev

I receive the following error:

Could not find bugsnag-6.24.2, listen-3.7.1, concurrent-ruby-1.1.10, rb-fsevent-0.11.1, rb-inotify-0.10.1, ffi-1.15.4 in locally installed gems
Run `bundle install` to install missing gems.

running bundle install in the theme directory returns could not locate Gemfile changing to the shopify-cli directory and running bundle install installs all the gems successfully, but then when I run shopify theme dev I get the same error as before.

After much research there aren't any leads as to what is causing this.