[BUG] Claude deskop app not re-initiating new Client registration during OAUTH process if 401 is returned along with 'invalid_client' during the authorize step

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?

Claude deskop app not re-initiating new Client registration during OAUTH process if 401 is returned along with 'invalid_client' due the authorize step.

The client Id got cleared from server side and the server no more maintains the client Id. The server wants to notify client to re-register client again and get new client Id.

What Should Happen?

New client registration flow should happen.

Error Messages/Logs

Steps to Reproduce

1. Connect to remote MCP server supporting oauth api's.
2. Use the existing client Id during the oauth flow.
3. 'authorize' endpoint returning 401 along with 'invalid_clientId'.
4. Client not starting new client registration and oauth flow ends with error.

Claude Model

None

Is this a regression?

No, this never worked

Last Working Version

_No response_

Claude Code Version

0.13.91

Platform

Anthropic API

Operating System

macOS

Terminal/Shell

Terminal.app (macOS)

Additional Information

_No response_