[BUG] Anthropic has throttled claude code in a way that makes it no longer viable

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?

Even simple commands get "API Error: Rate limit reached". Anthropic was clear that the throttling algorithm was changed. there are now catastrophic consequences.

What Should Happen?

Anthropic needs to revise the throttling algorithm so users of Claude code to actually do work. I am writing this at midnight on a Saturday night in the United States. This is well outside of any "peak" usage hours.

Error Messages/Logs

Only 1 agent running right now: tenant-screening-build (creating the 7 tenant screening services).

  No parallel agents — I launched just one to avoid the rate limit issue that was caused by multiple agents competing for throughput.

✻ Cogitated for 35s · 1 local agent still running

● Agent "XXXXXXX" completed
  ⎿  API Error: Rate limit reached

Steps to Reproduce

Frankly at this point just try to use Claude code......

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.86

Platform

Anthropic API

Operating System

Ubuntu/Debian Linux

Terminal/Shell

Xterm

Additional Information

This is a massive change in how Claude code manages sessions. Anthropic needs to fix this immediately.