What this error means
APIStatusError with status_code=200 when Anthropic API returns overloaded_error / rate_limit_error during streaming (SSE event) is a Anthropic API failure pattern reported for developers trying to fix incorrect status code for streaming errors in anthropic python sdk so retry/fallback logic based on status_code works correctly. Based on the imported evidence, treat this as a tool-specific troubleshooting page rather than a generic API error.
Why this happens
GitHub issue #1258 in anthropics/anthropic-sdk-python (sarth6, Mar 2026). When API returns HTTP 200 (streaming started fine) but then sends an SSE error event like overloaded_error, the SDK creates an APIStatusError with status_code=200 instead of 529. This breaks pydantic-ai FallbackModel which checks status_code >= 500 to decide whether to try the next model. Severity was confirmed by official collaborator dtmeadows and fixed in v0.87.0. High commercial value — impacts production AI workflow reliability.
Common causes
- GitHub issue #1258 in anthropics/anthropic-sdk-python (sarth6, Mar 2026). When API returns HTTP 200 (streaming started fine) but then sends an SSE error event like overloaded_error, the SDK creates an APIStatusError with status_code=200 instead of 529. This breaks pydantic-ai FallbackModel which checks status_code >= 500 to decide whether to try the next model. Severity was confirmed by official collaborator dtmeadows and fixed in v0.87.0. High commercial value — impacts production AI workflow reliability.
Quick fixes
- Confirm the exact error signature matches
APIStatusError with status_code=200 when Anthropic API returns overloaded_error / rate_limit_error during streaming (SSE event). - Check the Anthropic API account, local tool state, and provider configuration involved in the failing workflow.
- Reduce request pressure, check quota or plan limits, and retry with backoff instead of immediate repeated requests.
Platform/tool-specific checks
- Verify the command, editor, extension, or API client that produced the error.
- Compare local settings with CI, deployment, or editor-level settings when the error appears in only one environment.
- Avoid deleting credentials, local model data, or project settings until the failing scope is clear.
Step-by-step troubleshooting
- Capture the exact error message and the command, editor action, or request that triggered it.
- Check whether the failure is account/auth, quota/rate, model/provider, local runtime, or deployment configuration.
- Review the source evidence below and compare it with your environment.
- Apply one change at a time and rerun the smallest failing action.
- Keep the working fix documented for the team or deployment environment.
How to prevent it
- Keep provider/tool configuration documented.
- Record non-secret diagnostics such as tool version, provider name, model name, and command path.
- Add a lightweight check before CI or production workflows depend on the tool.