[BUG] Claude Cowork - Surfacing 1M context Bug and forcing to charge money

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?

During Claude Cowork usage - Something quite simple as preparing an interview prep guide, Claude charged money even when there was no need.

Error:

Loaded tools, created a file, used a tool
Loaded tools, created a file, used a tool
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

What Should Happen?

Claude should have provided a solution to work around this error and not charged my usage credits.

Error Messages/Logs

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

Steps to Reproduce

Prompt used:
Next interview prep - Interviewer - https://www.linkedin.com/in/riley-rindt/ Role - https://www.linkedin.com/jobs/view/sr-technical-program-manager-capacity-delivery-at-coreweave-4388481539/ Refer to my resume master data. And this is part of the full interview loop. There were 3 interviews already completed including hiring manager and 2 peer TPMs. Refer to this guide for interview prep - https://docs.google.com/document/d/1qtkd_VZTGEKzxUSaDa2M0Okw7yZ1kSxZGwz18XltrR4/edit?tab=t.0 Focus from that on the interview in full loop. The second interviewer is https://www.linkedin.com/in/annatdinh/. She is the skip manager for the candidate for this role. Third interviewer is https://www.linkedin.com/in/matthew-gavejian-b6166a6a/. And the goal is to convince these folks with partnership as TPM, and have exec presence to be a Sr Staff / Sr Principal level. Refer to my story bank - https://docs.google.com/spreadsheets/d/1TwAC4x_LcF7B7tdFlUhWu3dV3k3luW_eidoH6-0WI5E/edit?gid=1796602697#gid=1796602697 Refer to this document for additional feedback on this story bank - https://docs.google.com/document/d/1QRTnS7EsdX2vCMc_ROxcsQc5SGJYoQLjvSfmM4Monbk/edit?tab=t.0. Now prepare a proper interview prep guide for my remaining 3 Coreweave interviews.

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.139 (Claude Code)

Claude Code Version

2.1.139 (Claude Code)

Platform

Other

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_