[BUG] API Error: Rate limit reached after downgrade from Max to Pro - Claude Code unusable

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?

After downgrading from Claude Max to Pro plan (~1 week ago), Claude Code returns
"API Error: Rate limit reached" on every request including "hi".

Claude Code still displays "Claude Max" in header despite Pro plan being active.
/status shows: 1% session usage, 34% weekly usage, Extra usage $16.23/$42.50.
claude.ai web chat works normally on the same account.
claude logout also fails with the same rate limit error.

What Should Happen?

Working with claude code.

Error Messages/Logs

API Error: Rate limit reached

Steps to Reproduce

1. Downgrade from Max to Pro plan
2. Run claude
3. Type any message
4. Get "API Error: Rate limit reached"

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

Version: 2.1.81

Platform

Anthropic API

Operating System

Ubuntu/Debian Linux

Terminal/Shell

Other

Additional Information

Plan: Claude Max → Pro (downgraded ~1 week ago)