[Bug] Anthropic API Error: Overloaded - No Recovery on Retry or Session Resume

Bug Description
The Claude API in claude code session has started to throw Overloaded error which is not recovering on retries or on interrupt-then-continue

Error displayed in thinking
529 {"type":"error","error":{"type":"overloaded_error","message":"Overloaded"},"request_id":"req_011CZA5Ewmy9GzyJttzaeoyM"}

Environment Info

• Platform: darwin
• Terminal: pycharm
• Version: 2.1.78
• Feedback ID: cb57b9eb-c665-425b-9168-34fa51aea026

Errors

[{"error":"Error: Request was aborted.\n    at $ (/$bunfs/root/src/entrypoints/cli.js:1149:12459)\n    at abort (unknown)\n    at lf (/$bunfs/root/src/entrypoints/cli.js:7415:5656)\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:7387:4792)\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:670:14686)\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:670:4085)\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:670:3258)\n    at emit (/$bunfs/root/src/entrypoints/cli.js:656:528)\n    at uAR (/$bunfs/root/src/entrypoints/cli.js:663:996)\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:625:110466)","timestamp":"2026-03-18T06:21:08.305Z"},{"error":"Error: Request was aborted.\n    at $ (/$bunfs/root/src/entrypoints/cli.js:1149:12459)\n    at abort (unknown)\n    at lf (/$bunfs/root/src/entrypoints/cli.js:7415:5656)\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:7387:4792)\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:670:14686)\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:670:4085)\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:670:3258)\n    at emit (/$bunfs/root/src/entrypoints/cli.js:656:528)\n    at uAR (/$bunfs/root/src/entrypoints/cli.js:663:996)\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:625:110466)","timestamp":"2026-03-18T06:29:05.431Z"},{"error":"Error: Request was aborted.\n    at $ (/$bunfs/root/src/entrypoints/cli.js:1149:12459)\n    at abort (unknown)\n    at lf (/$bunfs/root/src/entrypoints/cli.js:7415:5656)\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:7387:4792)\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:670:14686)\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:670:4085)\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:670:3258)\n    at emit (/$bunfs/root/src/entrypoints/cli.js:656:528)\n    at uAR (/$bunfs/root/src/entrypoints/cli.js:663:996)\n    at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:625:110466)","timestamp":"2026-03-18T06:29:47.112Z"}]