As of January 19th 2022, you can use paper_trail gem in your Rails 7 app.
But you have to use this in your gem:
gem "paper_trail", git: "https://github.com/paper-trail-gem/paper_trail"
They haven't published the latest version. Also, they are waiting some updates from Rails team.
Caveat: you will get alerts that the paper_trail gem is not compatible with Rails 7.