VS Code Claude extension API usage limit reached

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?

Bug Description

Every month at the billing reset date, Claude Code immediately starts returning a 400 error claiming the workspace usage limit has been reached — despite the console showing significant budget remaining and the account being on Tier 4.

This has happened for at least two consecutive months (April and May 2026), each time blocking access until the next monthly reset.

API Error: 400 {"type":"error","error":{"type":"invalid_request_error","message":"You have reached your specified workspace API usage limits. You will regain access on 2026-06-01 at 00:00 UTC."},"request_id":"req_011CahTT19rCWDmWQPwbYb7s"}

Environment Info

• Platform: Windows (VS Code extension)
• Usage tier: Tier 4

Actual Behavior

Every single command fails with a 400 invalid_request_error claiming usage limits have been reached. This happens instantly at the start of each new billing cycle, not after heavy usage.

Additional Context

• The console does not show any workspace-level spend cap that would explain this
• Even non-API commands like claude config list fail with this error
• This is a recurring issue, not a one-time occurrence — it happened identically in April 2026 (reset May 1) and again in May 2026 (reset June 1)
• Related issues: #1047, #2127, #12698

Request ID for investigation: req_011CahTT19rCWDmWQPwbYb7s

What Should Happen?

Claude Code should work normally. The console clearly shows $223.08 of $3,000 spent — well within limits. The workspace has no custom spend limit set below the org limit.

Error Messages/Logs

API Error: 400 {"type":"error","error":{"type":"invalid_request_error","message":"You have reached your specified workspace API usage limits. You will regain access on 2026-06-01 at 00:00 UTC."},"request_id":"req_011CahU6rndKYZR7CLuVEPCC"}

Steps to Reproduce

1. Wait for monthly billing cycle to reset
2. Attempt any Claude Code command (even claude config list)
3. Immediately receive 400 error citing workspace usage limits

Claude Model

None

Is this a regression?

I don't know

Last Working Version

_No response_

Claude Code Version

latest

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

PowerShell

Additional Information

related issues (#1047, #2127, #12698)