[Bug] Anthropic API Error: Response exceeds 32000 output token maximum

Bug Description
claude just spent 30 minutes and used up 30% of my 5 hourly limit and all i got from it was this error "API Error: Claude's response exceeded the 32000 output token maximum. To configure this behavior, set the CLAUDE_CODE_MAX_OUTPUT_TOKENS environment variable. " and charged 25p

Environment Info

• Platform: darwin
• Terminal: vscode
• Version: 2.1.63
• Feedback ID: ce0cdf84-c1fd-4261-a166-96f64ff5efb5

Errors

[{"error":"Error: Request was aborted.\n    at MhR (/$bunfs/root/claude:821:96594)\n    at next (native:1:11)\n    at tB0 (/$bunfs/root/claude:6029:6980)\n    at next (native:1:11)\n    at R00 (/$bunfs/root/claude:6034:9198)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-03-02T20:33:13.647Z"},{"error":"Error: Request was aborted.\n    at makeRequest (/$bunfs/root/claude:307:3940)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-03-02T20:33:14.700Z"},{"error":"Error: Request was aborted.\n    at MhR (/$bunfs/root/claude:821:96594)\n    at next (native:1:11)\n    at tB0 (/$bunfs/root/claude:6029:6980)\n    at next (native:1:11)\n    at R00 (/$bunfs/root/claude:6034:9198)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-03-02T20:39:56.802Z"}]

To add insult to injury i gave the same task to codex 5.3 in copilot cli and it fixed it in less than 5 minutes