What
While Claude Code waits and retries a request to the API, the service that runs the model, the spinner (the animated waiting indicator) can show retry details. It now checks those details before drawing them. If it cannot draw one, it either skips it or replaces its error with a stand-in message reading "API error". It also reports a MalformedRetryStatusError that names what was wrong, and its log message says the session is unaffected.
Why
Badly formed retry information no longer trips up the waiting display, and the session carries on.