[BUG] Claude Code Sessions input locked after daily usage limit — persists after reset

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?

Every time the daily usage limit is reached, Claude Code Sessions enter a broken state that does not recover after the limit resets. This is a 100% reproducible bug that occurs consistently every day.

What Should Happen?

After the limit resets, sessions should return to fully functional state automatically without requiring any manual intervention.

Error Messages/Logs

Turn failed — Try sending it again
API Error: Extra usage is required for 1M context · enable extra usage at claude.ai/settings/usage, or use --model to switch to standard context
Note: This error occurs despite being on the Max plan, which includes 1M context. The app is incorrectly flagging the account as ineligible for extended context.

Steps to Reproduce

Open Claude Desktop Windows App → Claude Code tab
Start or continue any session on Max plan
Work until daily usage limit is reached
Wait for limit to reset
Attempt to continue working in the same session
Observe: "Usage limit reached" banner remains in red
Observe: Chat input is completely unresponsive — cannot type, delete, or press Enter
Kill process via Task Manager and relaunch — issue persists
Reinstall app — issue persists
Restart PC — issue persists

Note: Only workaround found is starting a brand new session. Affected sessions remain permanently locked.
2.1.114 → updated to 2.1.133 during investigation. Two conflicting installations detected (native + npm). Update resolved via claude update command.
Resolved duplicate installation conflict (native .local\bin + npm). Clean install now on 2.1.133. Original issue may have been partially caused by conflicting installations.

Claude Model

Not sure / Multiple models

Is this a regression?

No, this never worked

Last Working Version

Unknown — issue has occurred consistently since switching from Claude Code CLI to Claude Desktop App. No version has been observed working correctly after hitting the usage limit.

Claude Code Version

Claude Code 2.1.114

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Windows Terminal

Additional Information

Duplicate installation conflict detected during investigation:
Native install at .local\bin and orphaned npm install at AppData\Roaming\npm were both present, causing PATH conflicts. Resolved by running npm -g uninstall @anthropic-ai/claude-code and claude update (2.1.114 → 2.1.133). Bug persisted before and after cleanup, so this is likely not the root cause.
Related closed issue: #50790 (closed as stale without investigation — same bug)
Account plan: Max — 1M context window should be included, but app throws:
API Error: Extra usage is required for 1M context · enable extra usage at claude.ai/settings/usage
Impact: This bug occurs every single day, making affected sessions permanently unusable until a new session is started. Significantly impacts daily productivity.