[BUG] Claude Code shows 'Usage limit reached' despite session at 2% and weekly at 32%

[virtools]

Preflight Checklist

• I have searched existing issues and this hasn't been reported yet
• This is a single bug report (please file separate reports for different bugs)
• I am using the latest version of Claude Code

What's Wrong?

What's wrong?
Claude Code is blocking all input with a 'Usage limit reached' message, but the claude.ai usage panel shows I am well under both limits.

Plan: Pro

Usage at time of error:

• Current session: 2% used (resets in ~2h)
• Weekly (all models): 32% used (resets in ~2h 23min)
• Claude Design: 0% used

Actual behavior:
Input is completely blocked. The enforcement and the displayed usage panel clearly disagree.

Screenshots:

Additional context:
The claude.ai web interface works normally on the same account at the same time, confirming the issue is isolated to Claude Code's internal limit tracking.

What Should Happen?

Expected behavior:
Claude Code should accept prompts normally, since both session and weekly limits are far from exhausted.

Error Messages/Logs

API Error: Usage credits required for 1M context · turn on usage credits at claude.ai/settings/usage, or use --model to switch to standard context

Steps to Reproduce

1. Open Claude Code
2. Attempt to send any prompt
3. Input is blocked with 'Usage limit reached'

Claude Model

Sonnet (default)

Is this a regression?

Yes, this worked in a previous version

Last Working Version

No response

Claude Code Version

2.1.145 (Claude Code)

Platform

Anthropic API

Operating System

Windows

Terminal/Shell

VS Code integrated terminal

Additional Information

No response

[maheshkumar42]

I am facing the same issue. My plan is pro and limits are well under. Also getting this on Sonnet 4.6 Medium.

[futureformed]

It looks like a bug that was introduced after the latest update. Go and have a look at your JSON file, and you might see a model of Sonnet 1M on it.
It looks like they're tightening up the Sonnet model.

[maheshkumar42]

So found something interesting, in my desktop app, Claude Code
Opus 4.7: Works
Sonnet 4.6: NOT working
Haiku 4.5: Works

I didn't change anything, Sonnet has been working for more than a month or so.

[Grypus29]

Confirming this bug still occurs on Claude Code binary 2.1.149 (the latest at time of writing), via Claude Desktop on Windows 11.

Same exact error message:

API Error: Usage credits required for 1M context · turn on usage credits at claude.ai/settings/usage, or use --model to switch to standard context

Repro pattern from my logs (2026-05-23):

2026-05-23 20:05:30 [info] Sending message to session <blob>
2026-05-23 20:05:32 [warn] [CCD CycleHealth] <blob> api_error (success): API Error: Usage credits required for 1M context...
2026-05-23 20:05:32 [info] [CCD CycleHealth] unhealthy cycle for <blob> (2s, hadFirstResponse=true, reason=api_error)

Bug fires consistently within ~2s of sending any message on Sonnet 4.6, even in a fresh session with empty context. 8 consecutive failures across 24 minutes.

Workarounds that work:

• Switching to Opus 4.7 -> works fine
• Switching to Haiku 4.5 -> works fine
• Only Sonnet 4.6 is blocked

This suggests Claude Code is force-enabling the 1M context flag for Sonnet specifically, without a graceful fallback to 200k when the user does not have usage credits enabled. The fix is probably to either:

1. Not auto-enable 1M context when user has no credits, OR
2. Fallback gracefully to 200k on this specific error

Environment:

• Plan: Pro
• OS: Windows 11
• Claude Desktop with embedded Claude Code 2.1.149
• Model: Sonnet 4.6 (default)

[ShipManB]

I'm experiencing the same issue.

• Sonnet: usage limit reached (showing only 19% used, Weekly 5% used)
• On Chat, Sonnet works fine
• Opus: works fine
• Limit has persisted for over 12 hours after the 5-hour window reset
• AI support was unable to resolve this

[sangwanboy]

Same issue on max plan as well

[Mace-rust]

Same issue on max plan Sonnet 4.6 as well