[BUG] Despite setting extra limits in Claude web, API error 400 "Third-party apps now draw from your extra usage"

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?

Extra usage settings look correct: In https://claude.ai/settings/usage :

• The "allow extra usage" is enabled
• "€0.00 spent Resets May 1"
• "€17.00 - Current balance"

Yet despite this, I get this API error 400 "Third party apps now draw from your extra usage"

I tried restarting Claude Code , also log out and log in to Claude Code, but nothing works. Waited about 10 min since the extra limits enabled in Claude web.

What Should Happen?

Claude Code should allow usage since the limits are ok

Error Messages/Logs

API Error: 400 {"type":"error","error":{"type":"invalid_request_error","message":"Third-party apps now draw from your extra usage, not your plan limits. We've added a $20 credit to get you started. Claim it at claude.ai/settings/usage and keep going."},"request_id":"req_011CZqpMLV2mFDafSPRNAc8Y"}

Steps to Reproduce

1. Allow extra usage is enabled in Claude Web
2. Claude Code can be used for anything afterwards

Claude Model

None

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

2.1.96 (Claude Code)

Platform

Anthropic API

Operating System

Ubuntu/Debian Linux

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_