[BUG] Claude Code silently billed $447 to API instead of Max subscription, then gave incorrect auth confirmation

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?

Claude Code version: Latest (as of May 25, 2026)
OS: macOS (Darwin 25.3.0)

What happened

During Claude Code CLI sessions on May 24-25, 2026, my authentication silently
defaulted to API billing instead of my active Max subscription. I was charged $447.30
in API credits that should have been covered by Max.

The critical issue

When I explicitly asked Claude Code to verify my billing mode during the session, it
incorrectly confirmed I was on my Max subscription — twice. I relied on this and
continued working. The Usage dashboard at console.anthropic.com also showed $0 at the
time due to a reporting lag, further masking the problem.

The issue was only discovered after the session. Running claude auth login followed by
claude auth status then correctly showed subscriptionType: "max".

Three compounding failures

1. Auth defaulted to API billing without any warning, despite having an active Max

subscription

1. Claude Code gave incorrect billing confirmation when directly asked — twice
2. Usage dashboard showed $0 due to reporting lag, hiding the charges

Expected behavior

• Claude Code should use Max subscription when one is active
• If falling back to API billing, it should warn the user explicitly
• claude auth status (or equivalent checks during a session) should return accurate

billing information

Support response

I contacted support@anthropic.com requesting a refund. The AI support agent denied it,
stating "API credits that have been consumed are non-refundable under our Credit
Terms... regardless of the underlying cause — including authentication issues or
product bugs." It also stated it cannot escalate to a human reviewer.

A policy that charges users $447 due to a product bug, gives them incorrect
information when they try to verify, and then refuses a refund with no human
escalation path is not acceptable.

What Should Happen?

• Claude Code should use Max subscription when one is active
• If falling back to API billing, it should warn the user explicitly
• claude auth status (or equivalent checks during a session) should return accurate

billing information

Error Messages/Logs

Steps to Reproduce

Error: Exit code 127

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

Claude Code version: Latest (as of May 25, 2026) OS: macOS (Darwin 25.3.0)

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

Support response

I contacted support@anthropic.com requesting a refund. The AI support agent denied it,
stating "API credits that have been consumed are non-refundable under our Credit
Terms... regardless of the underlying cause — including authentication issues or
product bugs." It also stated it cannot escalate to a human reviewer.

A policy that charges users $447 due to a product bug, gives them incorrect
information when they try to verify, and then refuses a refund with no human
escalation path is not acceptable.