Unprocessable image in context burns credits with no recovery path

Bug Description

When an image in the conversation cannot be processed, Claude Code surfaces this error:

API Error: an image in the conversation could not be processed and was removed. Re-read the file with a different approach if you still need it.

The image is not actually removed from the conversation context. Every subsequent message re-attempts processing the broken image, fails, and consumes credits. This continues until the user either manually runs /clear, starts a new conversation, or exhausts their usage credits.

Steps to Reproduce

1. Send a screenshot or image file to Claude Code during a conversation
2. If the image fails to process (corruption, format issue, etc.), the error above appears
3. Continue sending messages in the same conversation
4. Each message burns credits as the system re-attempts to process the broken image

Expected Behavior

• The broken image should be automatically removed from context so subsequent messages don't re-attempt processing it
• At minimum, the error message should tell the user to run /clear or /compact to remove the broken image and stop credit consumption
• The current error message ("Re-read the file with a different approach") gives no indication that every future message will keep burning credits

Actual Behavior

• The broken image stays in context
• Every subsequent message re-processes the full context (including the broken image), fails, and consumes credits
• The model, when asked about the error, advised "it'll go away on its own once those messages scroll out of context" — which is the worst possible advice since waiting means burning more credits
• Credits are consumed until the user hits their usage limit

Impact

This is a significant UX and billing issue. Users who don't know about /clear will burn through their entire credit allocation with no recovery path. The error message actively misleads users by implying the image was "removed" when it wasn't.

Suggested Fix

1. Auto-remove: Strip the unprocessable image from context automatically so it doesn't get re-sent
2. Clear guidance: If auto-removal isn't feasible, the error message should say: "Run /clear to remove the broken image from this conversation and stop further credit usage"
3. Credit protection: Don't charge for API calls that fail due to unprocessable images in the context

Environment

• Claude Code (VS Code extension + CLI)
• macOS