[BUG] Update immediately exhausted API usage limits - VS Code extension

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?

After updating the Claude Code VS Code extension, I immediately received:
"You have reached your specified per-user API usage limits. Regain access on 2026-06-01"
The extension was working perfectly before the update. No usage was made after the update — the limit was hit instantly.

What Should Happen?

I need my access back urgently!!! I have many reports that depend on Claude Code!!!

Error Messages/Logs

Steps to Reproduce

After updating the Claude Code VS Code extension, I immediately received:
"You have reached your specified per-user API usage limits. Regain access on 2026-06-01"
The extension was working perfectly before the update. No usage was made after the update — the limit was hit instantly.

Claude Model

Other

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.100 (Claude Code)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_