chainId is not working for useReadContract

[FreezyEx]

I want to test my dapp with Anvil but when I try to read allowance using useReadContract it fails with the following error:
ContractFunctionExecutionError: Cannot decode zero data ("0x") with ABI parameters.

I am trying to force it to use the Anvil chainId but it doesn't seem to be working.

const { data: allowance, refetch: refetchAllowance, error: readError, failureReason } = useReadContract({
    address: selectedToken,
    abi: erc20Abi,
    functionName: 'allowance',
    args: [evmAccount.address, anotherAddress],
    chainId: 31337
  })