I keep getting asyncpg.exceptions.ConnectionDoesNotExistError: connection was closed in the middle of operation in my Sqlalchemy application

I have SQLAlchemy setup with pgbouncer, my pgboucer is configured to use session mode and my sqlalchemy engine config is as follows:

engine = create_async_engine(
    url=db_url,
    echo=False,
    pool_size=200,
    max_overflow=20,
    pool_timeout=30,
    pool_pre_ping=True,
    pool_recycle=1800,
    pool_reset_on_return=None,
    poolclass=AsyncAdaptedQueuePool,
    connect_args={"prepared_statement_cache_size": 0, 'server_settings': {'jit': 'off'}}
)
Session = sessionmaker(
    bind=engine,
    class_=AsyncSession,
    expire_on_commit=False,
    autoflush=False,
    autocommit=False,
)

My session usage is:

@asynccontextmanager
async def get_session_context() -> AsyncSession:  # type: ignore
    async with Session() as session:
        if session is None:
            raise Exception("Database session is None")
        try:
            yield session
        except Exception as e:
            LOGGER.error(pprint.pprint(e, indent=4, depth=4))
            await session.rollback()
            raise e
        finally:
            await session.close()

but I keep getting this error

.exceptions.ConnectionDoesNotExistError: connection was closed in the middle of operation

It seems sqlalchemy closes the database connection while it is still in use. The reason why I do not think the connection is getting closed from the pgbouncer side is because I tried using sqlalchemy with the database directly and I get the same error. it seems the connection is getting closed somehow.