dyld[55718]: Library not loaded: /usr/local/opt/ruby/lib/libruby.3.0.dylib
Referenced from: /usr/local/Cellar/macvim/8.2-171_1/MacVim.app/Contents/MacOS/Vim
Reason: tried: '/usr/local/opt/ruby/lib/libruby.3.0.dylib' (no such file), '/usr/local/lib/libruby.3.0.dylib' (no such file), '/usr/lib/libruby.3.0.dylib' (no such file), '/usr/local/Cellar/ruby/3.1.2/lib/libruby.3.0.dylib' (no such file), '/usr/local/lib/libruby.3.0.dylib' (no such file), '/usr/lib/libruby.3.0.dylib' (no such file)
On checking the location /usr/local/opt/ruby/lib/ I found that the file libruby.3.1.dylib is avialable instead of libruby.3.0.dylib.
So I created a sym link using the below command.
ln -s libruby.3.1.dylib libruby.3.0.dylib
This fixed my broken vim editor and I was up and running.
Below links helped me fix this issue.
Link1