[Bug] Frequent Anthropic API 500 errors and performance degradation

Bug Description
Claude Code is becoming very unstable and slow - to many 500 errors and really slow performance

Environment Info

• Platform: darwin
• Terminal: iTerm.app
• Version: 2.1.185
• Feedback ID: 85a7b49b-2346-46c8-bf8b-638e4d977e9b

Errors

[{"error":"Error: 500 {\"type\":\"error\",\"error\":{\"type\":\"api_error\",\"message\":\"Internal server error\"},\"request_id\":\"req_011CcLLDSZUSrdYKCbxrSEi6\"}\n    at generate (/$bunfs/root/src/entrypoints/cli.js:12:69182)\n    at makeRequest (/$bunfs/root/src/entrypoints/cli.js:52:7688)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-06-23T14:15:25.324Z"},{"error":"Error: 500 {\"type\":\"error\",\"error\":{\"type\":\"api_error\",\"message\":\"Internal server error\"},\"request_id\":\"req_011CcLLvzbgzF2g5oUNY8iyv\"}\n    at generate (/$bunfs/root/src/entrypoints/cli.js:12:69182)\n    at makeRequest (/$bunfs/root/src/entrypoints/cli.js:52:7688)\n    at processTicksAndRejections (native:7:39)","timestamp":"2026-06-23T14:24:43.128Z"}]