[BUG] Billing/extra usage limit change invalidates OAuth token, causes silent interrupt loop instead of showing auth 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?

• Claude code on an Ubuntu server (my server running on my local network) was authentificated via claude account (claude.ai OAuth), not claude API key, however there was an existing api key for this server (never used, just created in anthopic console),
• It worked perfectly, never an issue, lightning fast and reliable. Until I hit limit and I wanted to make it continue working. It worked, but I hit the extra usage limit again. I could not see it in claude app settings, part usage, it was not updated. I tried to increase the extra usage limit, that was successful and after saving, the actual usage appeared on the bargraph. But in this moment, it stopped working, it kept returning error in the session.
• After closing the original terminal and session where the problem appeared, I opened new one and the interruption problems started.
• The problem appears in VS Code and in SSH connection from my local machine powershell, the same way.

What Should Happen?

Expected behavior: Claude Code should detect the invalid token and prompt user to re-login with a clear message
Version: 2.1.80

Error Messages/Logs

Steps to Reproduce

1. Use Claude Code authenticated via claude.ai OAuth
2. Hit Pro usage limit, enable extra usage
3. Hit extra usage limit, increase it and save
4. Claude Code immediately starts showing Interrupted · What should Claude do instead? on every prompt
5. claude auth status shows loggedIn: false
6. claude login silently fails (no output)
7. Only fix: rm -rf ~/.claude + /login inside Claude Code

Point 7 never worked...

Claude Model

None

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.80

Platform

Anthropic API

Operating System

Ubuntu/Debian Linux

Terminal/Shell

VS Code integrated terminal

Additional Information

It does the same via VS code and via SSH in PowerShell on my local machine