After hitting the 'budget limit', increasing the budget, the chat won't continue

Version: 1.137.0-insider (user setup)
Commit: 94b021b519e8e3e99777a1ff72c77e32e0d4b1d3
Date: 2026-09-07T01:46:17Z
Electron: 42.10.0
ElectronBuildId: 15109253
Chromium: 148.0.7778.280
Node.js: 24.18.1
V8: 14.8.178.38-electron.0
@github/copilot: 1.0.84-canary.70.gdb75d0d.unsigned
@github/copilot-sdk: 1.0.13-preview.4
OS: Windows_NT x64 10.0.19045

- Feature (e.g. agent/edit/ask mode): Agent
- Selected model (e.g. GPT 4.1, Claude 3.7 Sonnet): Auto and Opus 5
- Logs:

Steps to Reproduce:

1. Hit your monthly budget limit
2. follow the 'Manage Budget' button, increase the budget in the website (https://github.com/settings/billing/budgets)
3. return to vscode and 'retry'. it still fails. wait. retry. fails.
4. restart vscode. retry. fails. start a new session. fails. wait 10 minutes. still fails.
5. take the time to file another issue (this happened before in #327322 ) and it still fails.
6. quit for the day cause... who codes without their copilot anymore 😢

```
2026-09-07 20:56:55.424 [info] [code-referencing] Public code references are enabled.
2026-09-07 20:56:55.436 [info] ccreq:3c5f46de.copilotmd | quotaExceeded | gpt-4o-mini-2024-07-18 | 953ms | [title]
2026-09-07 20:56:55.436 [error] Failed to fetch conversation title because of response type (quotaExceeded) and reason (You have exceeded your monthly quota)
2026-09-07 20:56:55.509 [info] Fetched model metadata in 106ms 93ffcb01-faaf-4fdf-bb39-f54e9bc1d7df
2026-09-07 20:56:55.516 [info] ccreq:09a90c3d.copilotmd | markdown
2026-09-07 20:56:55.837 [error] WebSocket CAPI error: You have exceeded your monthly quota (quota_exceeded)
2026-09-07 20:56:55.926 [info] Logged in as ChrisNolan
2026-09-07 20:56:56.259 [info] Got Copilot token for ChrisNolan
2026-09-07 20:56:56.260 [info] Copilot Chat: 0.65.2026090701, VS Code: 1.137.0-insider
2026-09-07 20:56:56.294 [info] copilot token sku: max_monthly_subscriber_quota
2026-09-07 20:56:56.294 [info] [code-referencing] Public code references are enabled.
2026-09-07 20:56:56.294 [info] copilot token sku: max_monthly_subscriber_quota
2026-09-07 20:56:56.294 [info] [code-referencing] Public code references are enabled.
2026-09-07 20:56:56.294 [info] copilot token sku: max_monthly_subscriber_quota
2026-09-07 20:56:56.294 [info] [code-referencing] Public code references are enabled.
2026-09-07 20:56:56.294 [info] copilot token sku: max_monthly_subscriber_quota
2026-09-07 20:56:56.294 [info] [code-referencing] Public code references are enabled.
2026-09-07 20:56:56.294 [info] copilot token sku: max_monthly_subscriber_quota
2026-09-07 20:56:56.294 [info] [code-referencing] Public code references are enabled.
2026-09-07 20:56:56.294 [info] copilot token sku: max_monthly_subscriber_quota
2026-09-07 20:56:56.294 [info] [code-referencing] Public code references are enabled.
2026-09-07 20:56:56.295 [info] copilot token sku: max_monthly_subscriber_quota
2026-09-07 20:56:56.295 [info] [code-referencing] Public code references are enabled.
2026-09-07 20:56:56.322 [info] ccreq:8d395101.copilotmd | quotaExceeded | gpt-5.6-luna | 713ms | [panel/editAgent]
2026-09-07 20:56:56.358 [info] [ToolCallingLoop] Stop hook result: shouldContinue=false, reasons=undefined
2026-09-07 20:56:56.465 [info] Fetched model metadata in 183ms 1ca9bee7-fccf-46c5-bc9b-d601f2405d90
2026-09-07 20:56:56.496 [info] ccreq:3c433704.copilotmd | markdown
2026-09-07 20:58:37.464 [info] [CopilotCLIChatSessionContentProvider] listSessions took 2.5018740000086837ms
2026-09-07 20:59:02.363 [info] [CopilotCLIChatSessionContentProvider] listSessions took 2.3921529999934137ms
2026-09-07 21:00:08.493 [info] [CopilotCLIChatSessionContentProvider] listSessions took 2.1520829999935813ms
2026-09-07 21:00:10.832 [info] [VoiceProgress] loop request=request_d1a85a05-c680-4b88-aae0-0a42105e1529 configured=true voice=false subagent=false stream=true
2026-09-07 21:00:11.146 [info] Request ID for failed request: 26f03129-a052-4832-b596-1556b6c7d5c8
2026-09-07 21:00:11.167 [error] Server error: 402 {"error":{"message":"You have exceeded your monthly quota","code":"quota_exceeded"}}
2026-09-07 21:00:11.232 [info] [AutomaticInstructionsCollector] Core vs extension instructions match (1 entries)
2026-09-07 21:00:11.293 [info] Logged in as ChrisNolan
2026-09-07 21:00:12.014 [info] Got Copilot token for ChrisNolan
2026-09-07 21:00:12.015 [info] Copilot Chat: 0.65.2026090701, VS Code: 1.137.0-insider
2026-09-07 21:00:12.048 [info] copilot token sku: max_monthly_subscriber_quota
2026-09-07 21:00:12.048 [info] [code-referencing] Public code references are enabled.
2026-09-07 21:00:12.048 [info] copilot token sku: max_monthly_subscriber_quota
2026-09-07 21:00:12.048 [info] [code-referencing] Public code references are enabled.
2026-09-07 21:00:12.048 [info] copilot token sku: max_monthly_subscriber_quota
2026-09-07 21:00:12.048 [info] [code-referencing] Public code references are enabled.
2026-09-07 21:00:12.048 [info] copilot token sku: max_monthly_subscriber_quota
2026-09-07 21:00:12.048 [info] [code-referencing] Public code references are enabled.
2026-09-07 21:00:12.049 [info] copilot token sku: max_monthly_subscriber_quota
2026-09-07 21:00:12.049 [info] [code-referencing] Public code references are enabled.
2026-09-07 21:00:12.049 [info] copilot token sku: max_monthly_subscriber_quota
2026-09-07 21:00:12.049 [info] [code-referencing] Public code references are enabled.
2026-09-07 21:00:12.049 [info] copilot token sku: max_monthly_subscriber_quota
2026-09-07 21:00:12.049 [info] [code-referencing] Public code references are enabled.
2026-09-07 21:00:12.049 [info] copilot token sku: max_monthly_subscriber_quota
2026-09-07 21:00:12.049 [info] [code-referencing] Public code references are enabled.
2026-09-07 21:00:12.118 [info] ccreq:9bf1d4ac.copilotmd | quotaExceeded | gpt-4o-mini-2024-07-18 | 1281ms | [title]
2026-09-07 21:00:12.118 [error] Failed to fetch conversation title because of response type (quotaExceeded) and reason (You have exceeded your monthly quota)
2026-09-07 21:00:12.176 [info] Fetched model metadata in 143ms f621c8c2-da85-4e3f-808d-9b36f64a0c92
2026-09-07 21:00:12.280 [info] ccreq:6bc6654f.copilotmd | markdown
2026-09-07 21:00:12.330 [error] WebSocket CAPI error: You have exceeded your monthly quota (quota_exceeded)
2026-09-07 21:00:12.332 [error] AbortError: This operation was aborted: Failed to fetch model list
2026-09-07 21:00:12.497 [info] Logged in as ChrisNolan
2026-09-07 21:00:12.938 [info] Got Copilot token for ChrisNolan
2026-09-07 21:00:12.938 [info] Copilot Chat: 0.65.2026090701, VS Code: 1.137.0-insider
2026-09-07 21:00:12.976 [info] copilot token sku: max_monthly_subscriber_quota
```