[BUG] This is frustating to get usage limit issue because of Anthropic capacity limitation

Open 💬 4 comments Opened Jun 6, 2026 by bijusiji29

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?

Title: [Bug] API Error: "Server is temporarily limiting requests (not your usage limit) · Rate limited" despite low usage on Claude Max

Bug Description
I am on the Claude Max plan and repeatedly receive the error:
"API Error: Server is temporarily limiting requests (not your usage limit) · Rate limited"
while working in Claude Code (VS Code extension), even though my usage meters show plenty of headroom:

  • Session (5hr): 47%
  • Weekly (7 day): 20%
  • Weekly Sonnet: 3%

I also intermittently see a "You've hit your usage limit" banner even though none of my limits are reached, plus errors like "an image in the conversation could not be processed and was removed."

Steps to Reproduce

  1. Open Claude Code in VS Code on a Max account
  2. Continue an active coding session (mid-task edits)
  3. Requests start failing with the server-side rate limit error after a few seconds

Expected Behavior
Requests should succeed within my Max plan limits; server-side capacity issues should not block paid usage for extended periods, and the UI should not show a misleading "usage limit reached" banner.

Actual Behavior
Repeated server-side rate limiting blocks work despite low personal usage. Occurred on Saturday, June 6, 2026 (US Eastern), during my limited weekend working time.

Environment

  • Plan: Claude Max
  • Platform: Windows
  • Client: Claude Code in VS Code (integrated)
  • Auth method: Claude AI (claude.ai login)
  • Location: Florida, US

Additional Context
This appears related to the ongoing June capacity incidents (e.g., issues #52784 and #53915 report the same error). Please confirm whether failed/rate-limited requests still consume session quota, as my session meter advanced during the errors.

What Should Happen?

Title: [Bug] API Error: "Server is temporarily limiting requests (not your usage limit) · Rate limited" despite low usage on Claude Max

Bug Description
I am on the Claude Max plan and repeatedly receive the error:
"API Error: Server is temporarily limiting requests (not your usage limit) · Rate limited"
while working in Claude Code (VS Code extension), even though my usage meters show plenty of headroom:

  • Session (5hr): 47%
  • Weekly (7 day): 20%
  • Weekly Sonnet: 3%

I also intermittently see a "You've hit your usage limit" banner even though none of my limits are reached, plus errors like "an image in the conversation could not be processed and was removed."

Steps to Reproduce

  1. Open Claude Code in VS Code on a Max account
  2. Continue an active coding session (mid-task edits)
  3. Requests start failing with the server-side rate limit error after a few seconds

Expected Behavior
Requests should succeed within my Max plan limits; server-side capacity issues should not block paid usage for extended periods, and the UI should not show a misleading "usage limit reached" banner.

Actual Behavior
Repeated server-side rate limiting blocks work despite low personal usage. Occurred on Saturday, June 6, 2026 (US Eastern), during my limited weekend working time.

Environment

  • Plan: Claude Max
  • Platform: Windows
  • Client: Claude Code in VS Code (integrated)
  • Auth method: Claude AI (claude.ai login)
  • Location: Florida, US

Additional Context
This appears related to the ongoing June capacity incidents (e.g., issues #52784 and #53915 report the same error). Please confirm whether failed/rate-limited requests still consume session quota, as my session meter advanced during the errors.

Error Messages/Logs

Steps to Reproduce

Title: [Bug] API Error: "Server is temporarily limiting requests (not your usage limit) · Rate limited" despite low usage on Claude Max

Bug Description
I am on the Claude Max plan and repeatedly receive the error:
"API Error: Server is temporarily limiting requests (not your usage limit) · Rate limited"
while working in Claude Code (VS Code extension), even though my usage meters show plenty of headroom:

  • Session (5hr): 47%
  • Weekly (7 day): 20%
  • Weekly Sonnet: 3%

I also intermittently see a "You've hit your usage limit" banner even though none of my limits are reached, plus errors like "an image in the conversation could not be processed and was removed."

Steps to Reproduce

  1. Open Claude Code in VS Code on a Max account
  2. Continue an active coding session (mid-task edits)
  3. Requests start failing with the server-side rate limit error after a few seconds

Expected Behavior
Requests should succeed within my Max plan limits; server-side capacity issues should not block paid usage for extended periods, and the UI should not show a misleading "usage limit reached" banner.

Actual Behavior
Repeated server-side rate limiting blocks work despite low personal usage. Occurred on Saturday, June 6, 2026 (US Eastern), during my limited weekend working time.

Environment

  • Plan: Claude Max
  • Platform: Windows
  • Client: Claude Code in VS Code (integrated)
  • Auth method: Claude AI (claude.ai login)
  • Location: Florida, US

Additional Context
This appears related to the ongoing June capacity incidents (e.g., issues #52784 and #53915 report the same error). Please confirm whether failed/rate-limited requests still consume session quota, as my session meter advanced during the errors.

Claude Model

None

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

Opus 4.8

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

Terminal.app (macOS)

Additional Information

Title: [Bug] API Error: "Server is temporarily limiting requests (not your usage limit) · Rate limited" despite low usage on Claude Max

Bug Description
I am on the Claude Max plan and repeatedly receive the error:
"API Error: Server is temporarily limiting requests (not your usage limit) · Rate limited"
while working in Claude Code (VS Code extension), even though my usage meters show plenty of headroom:

  • Session (5hr): 47%
  • Weekly (7 day): 20%
  • Weekly Sonnet: 3%

I also intermittently see a "You've hit your usage limit" banner even though none of my limits are reached, plus errors like "an image in the conversation could not be processed and was removed."

Steps to Reproduce

  1. Open Claude Code in VS Code on a Max account
  2. Continue an active coding session (mid-task edits)
  3. Requests start failing with the server-side rate limit error after a few seconds

Expected Behavior
Requests should succeed within my Max plan limits; server-side capacity issues should not block paid usage for extended periods, and the UI should not show a misleading "usage limit reached" banner.

Actual Behavior
Repeated server-side rate limiting blocks work despite low personal usage. Occurred on Saturday, June 6, 2026 (US Eastern), during my limited weekend working time.

Environment

  • Plan: Claude Max
  • Platform: Windows
  • Client: Claude Code in VS Code (integrated)
  • Auth method: Claude AI (claude.ai login)
  • Location: Florida, US

Additional Context
This appears related to the ongoing June capacity incidents (e.g., issues #52784 and #53915 report the same error). Please confirm whether failed/rate-limited requests still consume session quota, as my session meter advanced during the errors.

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