[BUG] API Error 500 on Sonnet 4.5 - Internal server error

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?

When I type anything into my Cursor terminal it gives me this error: API Error: 500 {"type":"error","error":{"type":"api_error","message":"Internal server error"},"request_id":"req_011CVT1zyPeMy1tc4kEEpgN1"}

What Should Happen?

It should function as normal in writing code.

Error Messages/Logs

API Error: 500 {"type":"error","error":{"type":"api_error","message":"Internal server error"},"request_id":"req_011CVT1zyPeMy1tc4kEEpgN1"}

Steps to Reproduce

I type anything and it gives me this same error above.

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.0.37

Claude Code Version

2.0.50

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Cursor

Additional Information

_No response_