[BUG] API Error: 500 {"type":"error","error":{"type":"api_error","message":"Overloaded"},"request_id":null}

Preflight Checklist

• [x] I have searched existing issues and this hasn't been reported yet
• [x] This is a single bug report (please file separate reports for different bugs)
• [x] I am using the latest version of Claude Code

What's Wrong?

Getting this today continuously in VS Code terminal. Opening a new session briefly fixes, but reappears after only a few interactions, then occurs continuously and the session is effectively dead. I noticed in the claude app, there was a new "memory" feature added - perhaps related?

What Should Happen?

It should not produce this error.

Error Messages/Logs

API Error: 500 {"type":"error","error":"type":"api_error","message":"Overloaded"},"request_id":null}

Steps to Reproduce

Any regular interaction.

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

Claude Code v2.0.31 Sonnet 4.5 · Claude Max

Platform

Anthropic API

Operating System

Other Linux

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_