[BUG] Incorrect Usage limit is reached popup even though it shows available

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?

<img width="1846" height="359" alt="Image" src="https://github.com/user-attachments/assets/40f85356-57d6-40c1-b494-5d39b83ae75e" />

<img width="718" height="280" alt="Image" src="https://github.com/user-attachments/assets/79df7043-0c6b-4cac-a30e-7068ebd5759d" />

When it happened?
When switched an existing chat with Opus 4.7 1M to Sonnet 4.6 and the context was more than 200k. After that I applied multiple steps to overcome this issue for example,

1. I tried to reopen the app,
2. created new chat session, changed model
3. clicked on upgrade and bought $5 credit (even if extra usage credit balance worth $140 is already there)
4. Uninstalled the Claude Code app and reinstalled again.

None of the above steps worked and now, it is not allowing me to use Claude Code at all.

What Should Happen?

It should have gracefully allowed switching to the model with lower context. Or at least it should have allowed to create new session and use it in regular way.

Error Messages/Logs

Usage limit is reached

Steps to Reproduce

When it happened?
When switched an existing chat with Opus 4.7 1M to Sonnet 4.6 and the context was more than 200k. After that I applied multiple steps to overcome this issue for example,

1. I tried to reopen the app,
2. created new chat session, changed model
3. clicked on upgrade and bought $5 credit (even if extra usage credit balance is there)

None of the above steps worked and now, it is not allowing me to use Claude Code at all.

Claude Model

Sonnet (default)

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

Latest version. Not able to use claude code

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_