[BUG] Credentials can be created but cannot be used by Claude Code client

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?

Authentication to Claude Code using a Pro suibscription creates a .credential.json under .claude folder, but the client still cannot be authenticated. any new chats returns an API error: rate limit reached even though the usage meter in settings on web portal still shows plenty of remaining quota, and initiating new chat on web works fine.

This bug started roughly on Mar 27. Downgrading to earlier versions cannot mitigate the issue.

What Should Happen?

code client successfully use the authenticated credentials

Error Messages/Logs

API error: rate limit

Steps to Reproduce

follow the normal login flow, then initiate a chat

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.80

Claude Code Version

2.1.87

Platform

Anthropic API

Operating System

Ubuntu/Debian Linux

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_