Claude Code (VS Code extension) prompts for usage credits on Fable 5 despite Max plan showing full entitlement

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?

What's Wrong?

On a Max plan, the Claude Code VS Code extension prompts to use usage credits when selecting/using Fable 5, even though claude.ai (browser) shows my full weekly usage limits and Fable 5 allowance untouched, with plenty of headroom remaining.

This started around 19–20 July 2026, coinciding with the end of the 50%-of-weekly-limit Fable 5 promotion and the switch to Fable 5 being "a standard part of the plan" for Max/Team Premium.

Environment

Extension: Claude Code for VS Code (Anthropic), Identifier anthropic.claude-code
Version: 2.1.215 (last updated ~18 hours before this occurred)
Plan: Max
OS: Windows

Steps Taken to Troubleshoot

Ran claude update — no effect (claude not on PATH in this environment)
Confirmed extension is on latest version via Extensions panel (2.1.215, Auto Update enabled)
Uninstalled and reinstalled the extension completely
Manually deleted stored credentials at %USERPROFILE%\.claude (credentials file)
Reopened VS Code and re-authenticated from scratch via the Claude Code panel

Expected Behaviour
Claude Code should draw on the same Max-plan Fable 5 entitlement as claude.ai, and only prompt for usage credits once that entitlement is actually exhausted.

Actual Behaviour
Claude Code continues to prompt for usage credits for Fable 5 immediately, regardless of the fresh reinstall, credential wipe, and re-authentication — while claude.ai (browser) shows full Fable 5 allowance still available on the same account.

Additional Notes
This looks like an entitlement-sync issue between Claude Code and claude.ai rather than a client-side/version issue, since all local troubleshooting steps have been exhausted.

What Should Happen?

see above

Error Messages/Logs

Steps to Reproduce

see above

Claude Model

Other

Is this a regression?

Yes, this worked in a previous version

Last Working Version

_No response_

Claude Code Version

latest as of 20th July 13:00 Central European Time

Platform

Other

Operating System

Windows

Terminal/Shell

Other

Additional Information

_No response_