A clearer error message now appears when an API request gets a 401 while your login is being refreshed, and Claude Code retries automatically
If an API request returns HTTP 401 (unauthorized) at the exact moment Claude Code is refreshing the session's credentials, users now see a specific message explaining that the sign-in was rejected while it was being refreshed, instead of the generic 'rejected credentials' message. Claude Code also now automatically retries the request in this case.
This avoids alarming or confusing generic-looking errors during a normal credential refresh, and the automatic retry means a brief 401 during refresh no longer requires the user to intervene manually.