[Bug] Anthropic API Error: Repeated 500 Internal Server Errors during execution

Bug Description
⎿ API Error: 500 {"type":"error","error":{"type":"api_error","message":"Internal server
error"},"request_id":"req_011CYVAbvz7ZQq3MrK6MQLUZ"}

✻ Cogitated for 1m 47s

❯ continou
⎿ API Error: 500 {"type":"error","error":{"type":"api_error","message":"Internal server
error"},"request_id":"req_011CYVAdfvoNrLxpihgY9Qn9"}

❯ continou
⎿ API Error: 500 {"type":"error","error":{"type":"api_error","message":"Internal server
error"},"request_id":"req_011CYVAdvryh48NLNfwcTpV4"}

Environment Info

• Platform: darwin
• Terminal: vscode
• Version: 2.1.56
• Feedback ID: e7ea35f9-40fd-42bc-b7a9-d21e834016b3

Errors

[{"error":"FileTooLargeError: File content (1.1MB) exceeds maximum allowed size (256KB). Please use offset and limit parameters to read specific portions of the file, or use the GrepTool to search for specific content.\n    at No_ (/$bunfs/root/claude:1646:370)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-02-25T16:56:45.126Z"},{"error":"MaxFileReadTokenExceededError: File content (40211 tokens) exceeds maximum allowed tokens (25000). Please use offset and limit parameters to read specific portions of the file, or use the GrepTool to search for specific content.\n    at Rt_ (/$bunfs/root/claude:1783:7740)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-02-25T16:56:47.549Z"},{"error":"MaxFileReadTokenExceededError: File content (40211 tokens) exceeds maximum allowed tokens (25000). Please use offset and limit parameters to read specific portions of the file, or use the GrepTool to search for specific content.\n    at Rt_ (/$bunfs/root/claude:1783:7740)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-02-25T16:56:50.194Z"},{"error":"Error: EISDIR: illegal operation on a directory, read '/Users/arhansubasi/new-blokchain/skills/tools'\n    at No_ (/$bunfs/root/claude:1646:248)\n    at async At_ (/$bunfs/root/claude:1787:2402)\n    at async call (/$bunfs/root/claude:1792:6048)\n    at async vQ8 (/$bunfs/root/claude:3470:15034)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-02-25T16:58:10.334Z"},{"error":"Error: 500 {\"type\":\"error\",\"error\":{\"type\":\"api_error\",\"message\":\"Internal server error\"},\"request_id\":\"req_011CYV9DdJ1VjzeJSjAcWxu2\"}\n    at generate (/$bunfs/root/claude:267:28561)\n    at makeRequest (/$bunfs/root/claude:306:5435)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-02-25T16:58:36.249Z"},{"error":"MaxFileReadTokenExceededError: File content (38071 tokens) exceeds maximum allowed tokens (25000). Please use offset and limit parameters to read specific portions of the file, or use the GrepTool to search for specific content.\n    at Rt_ (/$bunfs/root/claude:1783:7740)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-02-25T17:0…

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