[BUG] 1M context model switch without selecting the option

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?

Hi Team,

I am facing this issue from last friday may 29 2025
"API Error: Usage credits required for 1M context · turn on usage credits at claude.ai/settings/usage, or use --model to switch to standard context"

even small prompt is blocking in all new sessions

Also I cant able to see default model selection in VS code claude code model selection

What Should Happen?

New opus 4.8 release may affects the older version may cause regression bug

Error Messages/Logs

Steps to Reproduce

1.Create new session
2.Select default sonnet 4.6 from claude code model selection
3.try to use with small prompt for 2 hrs
4.create new session again
5.repeat the above steps will get API error

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.159

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_