[BUG] Windows desktop: 'Claude Fable 5 is currently unavailable' banner hides the working-directory switcher in active sessions

[DraftingDreamer]

Preflight Checklist

• I have searched existing issues and this bug has not been reported.
• This is a single bug report.

Describe the bug

On the Claude Code Windows desktop app, while Fable 5 is unavailable a persistent
banner — "Claude Fable 5 is currently unavailable. Learn more" — is rendered in the slot
directly above the input composer.

In an active session, this banner occupies the exact position where the
working-directory switcher row (the Local | <folder> | [+ add folder] chips) normally
appears, so the switcher is no longer shown and cannot be clicked. There is no way to
add/change the working directory from the UI while the banner is present.

In a new session the switcher row and the banner both render (chips stacked above the
banner), so the switcher is reachable. The problem only happens inside an active session,
where the banner replaces the switcher row.

The banner has no dismiss (×) control, and switching the model away from Fable 5
(now on Opus 4.8) does not remove it.

Steps to reproduce

1. Launch the Claude Code desktop app on Windows while Fable 5 is unavailable (banner shows).
2. Open / start an active session (composer shows "Type / for commands").
3. Look above the input box: only the banner is shown; the Local | <folder> | [+]
   working-directory switcher row is gone.
4. Try to add or switch the working directory → not possible from the UI.

Expected behavior

The working-directory switcher row should stay visible and clickable regardless of the
banner — e.g. render the banner above/below the switcher (as the new-session view already
does), or make the banner dismissible so it does not occupy the switcher's slot.

Actual behavior

In an active session the banner takes the switcher's slot; the switcher is hidden and there
is no way to change the working directory from the UI.

Workarounds tried (none worked)

• Maximizing / enlarging the window — no effect.
• Zooming the UI out (Ctrl + -) — no effect.
• No × on the banner; switching model away from Fable 5 does not remove it.

Environment

• OS: Windows 11 Home, 25H2 (build 26200)
• Claude Code desktop app: 1.12603.1
• Claude Code (CCD/SDK): 2.1.170
• Node: 24.16.0
• Selected model: Opus 4.8 (Fable 5 unavailable)

Screenshots

1. New session — switcher row (Local | issue | +) renders above the banner; reachable.
2. Active session — only the banner renders above the input; the switcher row is gone.

(Screenshots attached below.)

Related

• [FEATURE] #68355 — macOS feature request to make the same banner dismissible.
• Model-unavailable error on startup causes permanent input freeze (not recovered by /model switch) #68150 — Linux model-unavailable input freeze (different symptom, same banner trigger).

[DraftingDreamer]

New session — switcher row reachable

Active session — switcher row gone, banner in its place

[dakujem]

Why can't we just dismiss the banner?

[danedwardsdeveloper]

Please can we dismiss the banner

[voedev]

They won't remove this popup because they're trying to build as much hype as possible ahead of their IPO 😆

[shodanx2]

Put an X to dismiss this banner, I don't care about hype, do not advertise to me, I ALREADY PAID.

[W3i-Stephane]

Seeing another variant of this same banner-overlap bug on the Windows desktop app. In my case the persistent "Claude Fable 5 is currently unavailable. Learn more" banner is rendered on top of the GitHub forks + PR status row, so I can't see or interact with my fork list or open PR statuses while it's present.

Same characteristics as the original report: no dismiss (×) control on the banner, and switching the active model away from Fable 5 (I'm on Opus 4.8) doesn't clear it. Maximizing the window and zooming out (Ctrl + -) have no effect either.

Suggested fix is the same as proposed here: render the banner above/below the affected row rather than in its slot, or make the banner dismissible.

Platform: Windows desktop
Model: Opus 4.8 (Fable 5 unavailable)