[DOC] Claude Code making excessive tool calls in a loop

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?

I switched from Pro to API yesterday
Using the same model, sonnet-4-5, doing the same tasks i'm getting drastically different behavior.
Claude code is very frequently going into a loop where it does some things, get s the error below, then goes into a loop and keeps doing it until I quit that session.
I am continually seeing this and my usage pattern hasn't changed and I'm doing very much the same tasks.
This never happened, not even once, in pro.
Claude code has wasted $5 to $8 dollars today doing this. (May not seem like much but it's a huge hit to productivity).
Here is the error being returned that claude code loops on "429 {"error":{"message":"{\"type\":\"error\",\"error\":{\"type\":\"rate_limit_error\",\"message\":\"This request would exceed the rate limit for your
organization (b2c6a727-193f-4f84-94e6-5709a9a83341) of 30,000 input tokens per minute. For details, refer to:
https://docs.claude.com/en/api/rate-limits. You can see the response headers for current usage. Please reduce the prompt length or the maximum tokens
requested, or try again later. You may also contact sales at https://www.anthropic.com/contact-sales to discuss your options for a rate limit
increase.\"},\"request_id\":\"req_011CV4RLicnmeAF9TPGZ5GWu\"}. Received Model Group=claude-sonnet-4-5\nAvailable Model Group
Fallbacks=None","type":"None","param":"None","code":"429"}}"

What Should Happen?

Well, I'd like a refund but I doubt that will happen and I'd like to have this fixed so I can continue to use the api model. I am able to control and vidualize my costs better this way.

Error Messages/Logs

429 {"error":{"message":"{\"type\":\"error\",\"error\":{\"type\":\"rate_limit_error\",\"message\":\"This request would exceed the rate limit for your
     organization (b2c6a727-193f-4f84-94e6-5709a9a83341) of 30,000 input tokens per minute. For details, refer to:
     https://docs.claude.com/en/api/rate-limits. You can see the response headers for current usage. Please reduce the prompt length or the maximum tokens
     requested, or try again later. You may also contact sales at https://www.anthropic.com/contact-sales to discuss your options for a rate limit
     increase.\"},\"request_id\":\"req_011CV4RLicnmeAF9TPGZ5GWu\"}. Received Model Group=claude-sonnet-4-5\nAvailable Model Group
     Fallbacks=None","type":"None","param":"None","code":"429"}}

Steps to Reproduce

Use Claude Code and ask it to review a project directory and edit a few files and fix those bugs in the code that I'm asking about.

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.0.28

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_