[BUG] API Error: Overloaded should automatically retry w/ backoff

Looks like this behavior was just improved/fixed today in 0.2.53 (Claude Code):

  ⎿  API Error ({"type":"error","error":{"details":null,"type":"overloaded_error","message":"Overloaded"}           }) · Retrying in 1 seconds… (attempt 1/10)
  ⎿  API Error ({"type":"error","error":{"details":null,"type":"overloaded_error","message":"Overloaded"}             }) · Retrying in 1 seconds… (attempt 1/10)

Confirmed that for API Error (Request timed out.) it does exponential backoff starting with the second retry, maxing out at 32 seconds:

  ⎿  API Error (Request timed out.) · Retrying in 1 seconds… (attempt 1/10)
  ⎿  API Error (Request timed out.) · Retrying in 1 seconds… (attempt 2/10)
  ⎿  API Error (Request timed out.) · Retrying in 2 seconds… (attempt 3/10)
  ⎿  API Error (Request timed out.) · Retrying in 4 seconds… (attempt 4/10)
  ⎿  API Error (Request timed out.) · Retrying in 8 seconds… (attempt 5/10)
  ⎿  API Error (Request timed out.) · Retrying in 16 seconds… (attempt 6/10)
  ⎿  API Error (Request timed out.) · Retrying in 32 seconds… (attempt 7/10)
  ⎿  API Error (Request timed out.) · Retrying in 32 seconds… (attempt 8/10)
  ⎿  API Error (Request timed out.) · Retrying in 32 seconds… (attempt 9/10)
  ⎿  API Error (Request timed out.) · Retrying in 32 seconds… (attempt 10/10)
  ⎿  API Error: Request timed out.

presumably Overloaded would behave similarly.

Thanks @scottleibrand. Yep, this is fixed in the latest version. Please reopen this ticket if you run into the problem again.

Still i see the issue

{"type":"error","error":{"details":null,"type":"overloaded_error","message":"Overloaded"}

Overloaded errors should still occur. But on never versions it will automatically retry. What version are you on?

Not retrying in the latest version 0.2.56 when overload error occurs

Strange. It's working reliably for me. Maybe open a new issue with screenshots?

Now I'm seeing the same thing @plucked is. Perhaps they removed the automatic retry in a version between 0.2.53 and 0.2.56? I don't have perms to reopen this one, so I'll open a new issue.

As I just noted at https://github.com/anthropics/claude-code/issues/661#issuecomment-2765362697:

A workaround for this is:

npm i -g @anthropic-ai/claude-code@0.2.55 && claude

I successfully downgraded to 0.2.55 with that and automatic API retries are working again on the newly downgraded session as well.

<img width="1222" height="531" alt="Image" src="https://github.com/user-attachments/assets/de62b919-1554-441a-b8b6-d064a54a5c48" />
keep API Error, when will fix this? most of the time is retrying API Error

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