Image dimension error causes unrecoverable session loop in VS Code/Cursor extension (v2.1.112)

Bug

After accumulating multiple screenshots in a conversation, the extension throws "An image in the conversation exceeds the dimension limit for many-image requests (2000px)" and enters an infinite error loop. All subsequent messages (including text-only) repeat the same error — the session becomes completely unrecoverable.

Steps to reproduce

1. Open Claude Code extension in Cursor (v2.1.112)
2. Send multiple screenshots during a work session (standard Linux screenshot tool)
3. After ~3-6 images, the dimension error appears
4. Any subsequent message (even text-only, no images) triggers the same error indefinitely

Expected behavior

• Images should be auto-resized to stay within API limits, OR
• The error should only affect the problematic message, allowing the conversation to continue with text or smaller images

Actual behavior

• Error loops infinitely, session is unrecoverable
• User is forced to start a new session, losing all conversation context

Environment

• Extension version: 2.1.112 (bug present) / 2.1.92 (works fine)
• Editor: Cursor
• OS: Pop!_OS 24.04 LTS (Linux)
• Display: 2560x1600 (screenshots naturally exceed 2000px)
• Plan: Max

Workaround

Downgrade to v2.1.92 resolves the issue — long sessions with many screenshots work without any errors.

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Co-Authored-By: Claude Opus 4.6 (1M context) <noreply@anthropic.com>