Rails 3.2.14 weird session expiry issue

I have a Rails 3.2.14 app, where in my local if I have logged in and out with multiple user accounts for testing suddenly during the next(lets say 3rd user login) login attempt I will be taken to session_expired page, and after this I would not be able to login.

I would have to close my browser and then login again. I do not know why this is happening. Is there a bug in Rails 3.2.14? I am using devise for login.

Are the cookies getting corrupted? I have even tried resetting session just before a new session is created but that does not help.

In Rails console I keep getting Can't verify CSRF authenticity token. I am using form_tag and authenticity_token is present in the form. It only works if I close the browser and try to relogin.