This Stack Overflow reply was excellent, giving a breakdown of how it was resovled.

Problem

PG::ConnectionBad: could not connect to server: No such file or directory
	Is the server running locally and accepting
	connections on Unix domain socket "/tmp/.s.PGSQL.5432"?

Running brew services restart postgres looked like it fixed the issue but when looking at brew services an error was present in the output.

Updated 2022-10-11

TLDR;