[BUG] Server is Busy & "API Error: Unable to connect to API (ECONNRESET)" errors for 48+ hours in cowork

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?

For the last 48+ hours in cowork on the native app (currently running 1.14271.0 but I updated yesterday to this version in hopes it would resolve the issue), I have consistently run into Server is Busy and "API Error: Unable to connect to API (ECONNRESET)" errors in cowork making the service entirely unusable.

Running MacOS Tahoe 26.2. I have contacted support 24 hours ago and received no response.

<img width="605" height="385" alt="Image" src="https://github.com/user-attachments/assets/c6cdbcc8-e74b-44f1-aa51-8ac5d37a9b65" />

What Should Happen?

I expect to be able to use Cowork within the usage limits without issue. Especially at $100/mo.

Error Messages/Logs

Steps to Reproduce

Prompt cowork. Wait for the server is busy error to retry 10x. Watch the request fail. Over and over and over again.

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

1.14271.0

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Other

Additional Information

_No response_