[BUG] Extension shows "usage limit reached" while /usage reports 17% session / 1% weekly

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?

Bug Description

The VS Code extension displays a "usage limit reached" and "Prompt is too long" messages and blocks further
use, but running /usage inside the extension shows significant remaining capacity.

Environment

• Plan: Pro
• Tool: Claude Code VS Code Extension
• Extension version: v2.1.169
• OS: macOS

Actual Behavior

Extension blocks further use despite /usage showing:

• Session (5h): 17% used
• Weekly (7 day): 1% used

Additional Context

This appears to be a display/sync bug where the extension's local limit tracking is out of sync with the actual server-side usage data returned by /usage.

Possibly related: #24843, #58557

What Should Happen?

Expected Behavior

Extension should allow continued use until actual session or weekly limits are reached, consistent with the data returned by /usage.

Error Messages/Logs

Steps to Reproduce

Steps to Reproduce

1. Use Claude Code in VS Code during a session
2. Extension displays a usage limit reached message
3. Run /usage — output shows 17% session (5h) and 1% weekly used

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

2.1.169

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

VS Code integrated terminal

Additional Information

_No response_