"Request too large (max 32MB)" hard-stops the conversation instead of letting the model recover

Problem

When a request exceeds the 32MB API limit, Claude Code stops the turn with:

⏺ Request too large (max 32MB). Double press esc to go back and try with a smaller file.

The model never sees this error, so it can't retry, resize the image, or adapt in any way. The entire conversation just stops.

The message is also misleading. In my case the file being read was tiny (49KB) - the real cause was ~38 screenshots accumulated in context over the session pushing the total request size over 32MB. "Try with a smaller file" doesn't help there; nothing the user does with the next file fixes it.

Seen on v2.1.195 during a long session that read many screenshots via the Read tool.