[BUG] IN VS CODE CLAUDE EXTENSION GETTING API 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 USING VS CLAUDE CODE EXTENSION IAM GETTING PERSISTENT ERROR AFTER TRYING EVERYTHING ITS API ERROR RATE LIMIT REACHED HOW TO FIX

What Should Happen?

IT SHOULD WORK WITHOUT ERROR AS I HAVE USAGE LIMIT LEFT

Error Messages/Logs

Steps to Reproduce

ONLY HAPPENING WITH MINE OR EVERYONE?

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.68

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_