When config.assets.compile = true is set in production environment (Rails 3.2) then the SystemStackError is raised.
The workaround is to set it to false (which is ugly really).
This doesn’t happen in a brand new app.
Additionally running the RAILS_ENV=staging rails s still throws the SystemStackError while the staging.rb is empty or same as production or even doesn’t exist.
More details in the issue.
Any thought how it can be fixed?
The problem is the Authlogic issue.
I just decided to switch over to Devise.