[BUG] Session limit hits very fast and "API Error: Server is temporarily limiting requests..."

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?

I'm submitting normal tasks to Claude, and after a couple of minutes of running, it throws an API error about the request limit. With this error comes excessive session limit usage — the session hits 100% in only a couple of minutes. I'm using Opus 4.8 [1M].

• Plan: Max 5x.

What Should Happen?

Don't hit the request limit and don't hit the session limit on 100% in a couple minutes of use.

Error Messages/Logs

API Error: Server is temporarily limiting requests (not your usage limit) · Rate limited

Steps to Reproduce

1. Open Claude Code and start a new session with model Opus 4.8 [1M context].
2. Submit a normal (non-trivial) task — e.g., a code implementation or multi-step analysis.
3. Let the session run for approximately a couple minutes.
4. Observe: an API error about the request limit is thrown mid-execution.
5. Check the session usage indicator — it reads 100% despite minimal interaction time.

Expected: Session should sustain normal tasks for a full session without hitting the limit within minutes.
Actual: Session exhausts to 100% and throws a request-limit API error after a couple minutes.

Claude Model

Opus

Is this a regression?

Yes, this worked in a previous version

Last Working Version

2.1.178

Claude Code Version

2.1.179

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

WSL (Windows Subsystem for Linux)

Additional Information

_No response_