[Bug] Image rejected as too large despite being under 50 KB limit

Bug Description
When I paste an image in CLI, there is a message saying Image was too large, my image is 41 KB

Environment Info

• Platform: darwin
• Terminal: vscode
• Version: 2.0.70
• Feedback ID: 84fd6641-4060-4104-a7f2-c29475ad5091

Errors

[{"error":"Error: 400 {\"type\":\"error\",\"error\":{\"type\":\"invalid_request_error\",\"message\":\"messages.38.content.0.image.source.base64: image exceeds 5 MB maximum: 7894984 bytes > 5242880 bytes\"},\"request_id\":\"req_011CWAkmDUkUFYPBuJT9oRpZ\"}\n    at generate (/$bunfs/root/claude:413:10836)\n    at makeRequest (/$bunfs/root/claude:750:5434)\n    at processTicksAndRejections (native:7:39)","timestamp":"2025-12-16T17:24:30.921Z"},{"error":"Error: 400 {\"type\":\"error\",\"error\":{\"type\":\"invalid_request_error\",\"message\":\"messages.38.content.0.image.source.base64: image exceeds 5 MB maximum: 7894984 bytes > 5242880 bytes\"},\"request_id\":\"req_011CWAm26duNQLFZucbfvso5\"}\n    at generate (/$bunfs/root/claude:413:10836)\n    at makeRequest (/$bunfs/root/claude:750:5434)\n    at processTicksAndRejections (native:7:39)","timestamp":"2025-12-16T17:27:52.743Z"}]