Claude Code Performance Degradation: A Session Management Hypothesis

Critical Issue September 28, 2025 WCNegentropy Technical Analysis

This technical assessment analyzes persistent Claude Code performance issues affecting coding capabilities and instruction following. Evidence suggests these stem from a critical session lifecycle management bug in Anthropic's backend infrastructure where authentication sessions accumulate due to failed cleanup processes, causing "sticky routing" to degraded servers.

Executive Summary

Key Finding

The account-specific nature of these issues, combined with their persistence across clean installations and new environments, points to backend session management failures rather than client-side problems or model degradation.

Problem Statement

Recent persistent performance issues with Claude Code, particularly affecting coding capabilities and instruction following, may stem from a critical session lifecycle management bug in Anthropic's backend infrastructure. This hypothesis suggests that authentication sessions accumulate on user accounts due to failed cleanup processes, causing "sticky routing" to degraded servers that persists even across fresh installations and new environments.

Impact

  • User Experience: Claude Code becomes "essentially useless" for affected users
  • Persistence: Issues continue across fresh VM installations and new environments
  • Business Impact: Forced subscription cancellations and reduced user confidence
  • Mixed Impact: Some users unaffected while others severely impacted

Technical Background

Claude Code Architecture

Claude Code operates as an NPM-distributed CLI tool that requires OAuth authentication with Anthropic's backend services. The architecture involves:

NPM Installation

Global installation via npm install -g @anthropic-ai/claude-code

OAuth Authentication

Initial setup triggers browser-based OAuth flow through localhost:54545 callback

Session Management

Persistent sessions maintained for context, file tracking, and environment state

Backend Routing

User requests routed to appropriate server clusters based on session data

Authentication Flow

# Installation
npm install -g @anthropic-ai/claude-code

# First run triggers OAuth
claude
# Opens browser for authentication
# Generates tokens stored in ~/.claude/.credentials.json

OAuth Process Steps:

  1. Authorization Request: Client requests access with PKCE challenge
  2. User Authentication: Browser-based login and permission grant
  3. Token Exchange: Authorization code exchanged for access/refresh tokens
  4. Session Creation: Backend creates session record linked to user account
  5. Routing Assignment: Session associated with server cluster for load balancing

Session Persistence Requirements

Claude Code requires stateful sessions to maintain:

  • Conversation context across terminal interactions
  • File system state and modifications
  • Environment configurations and permissions
  • Background processes and shell state
  • Project-specific settings and workflows

Core Hypothesis: Session Buildup Bug

The Theory

The performance degradation stems from a session lifecycle management bug where:

1

Session Creation

Each Claude Code authentication creates a backend session record

2

Failed Cleanup

When users revoke sessions or uninstall, backend cleanup processes fail

3

Session Accumulation

Orphaned sessions accumulate in user account records

4

Sticky Routing

Load balancers continue routing based on stale session data

5

Degraded Experience

Users consistently routed to problematic server clusters

Technical Mechanism

Normal Flow:

Create Session → Authenticate → Use → Expire/Revoke → [CLEANUP] → Remove from Routing

Bug Flow:

Create Session → Authenticate → Use → Expire/Revoke → [CLEANUP FAILS] → Routing Persists

Why This Explains the Symptoms

Fresh installations don't fix issues

Account-level routing corruption persists regardless of client environment

Mixed user experiences

Some users experience severe dysfunction while others work normally

Problems worsen over time

Accumulated sessions cause progressive degradation

Cross-environment persistence

Issues persist across different environments, VMs, and cloud platforms

Supporting Evidence

Evidence from Anthropic's Postmortem

"Context Window Routing Error: Certain user requests meant for Sonnet 4 were misrouted to servers anticipating a 1 million token context window. This misrouting initially affected a small percentage but peaked at 16%, degrading responses and causing 'sticky' behavior where affected users repeatedly hit wrong servers."
— Anthropic Official Postmortem, September 16, 2025

This directly supports the session buildup hypothesis - users getting "stuck" hitting degraded servers due to routing issues.

User-Reported Patterns

Persistence Across Environments

  • "Claude Code had become essentially useless for me, even in fresh NPM installs in brand new environments on newly rented VMs"
  • Issues persist on HuggingFace Spaces and GitHub Codespaces
  • Clean installations fail to resolve problems

Account-Specific Impact

  • Mixed user experiences - some report normal operation while others face severe issues
  • Problems tied to specific accounts rather than general service degradation
  • Users forced to cancel subscriptions due to persistent issues

Progressive Degradation

  • Claude Code "measurably losing the ability to perform basic coding"
  • Gradual worsening over time rather than sudden failures
  • Refusal to read CLAUDE.md or follow basic instructions
  • Increasing use of placeholder code instead of functional implementations

Technical Evidence from Community Reports

GitHub Issues

  • Session-destroying failures from compaction timeouts (#2423)
  • Account token persistence across different credentials (#5931)
  • Session termination causing complete context loss (#4165)
  • Session contamination and incorrect context persistence

Authentication Problems

  • OAuth expired errors without triggering new auth flows
  • Interactive login broken while direct token setup works
  • Authentication state conflicts between different accounts

Technical Analysis

Session Lifecycle Failure Points

Race Conditions in Cleanup

User Action: Revoke Session
Backend Process 1: Mark session inactive  
Backend Process 2: Remove from routing table
Backend Process 3: Delete session record

# If Process 2 or 3 fails, session remains in routing

Database Transaction Failures

  • Session deletion transactions may timeout or fail silently
  • Partial cleanup leaves sessions in inconsistent states
  • Concurrent operations during installation/removal create conflicts

Load Balancer Persistence

  • Session affinity rules not updated when sessions are revoked
  • Stale routing entries direct users to degraded server clusters
  • Health checks may not detect session-level routing problems

Resource Exhaustion Symptoms

Accumulated sessions could cause:

Connection Pool Exhaustion

Too many stale sessions consuming connections

Rate Limiting Triggers

Account appearing to have excessive active sessions

Memory Leaks

Session management services retaining orphaned session data

Load Balancer Overload

Routing tables growing beyond optimal size

Infrastructure Scaling Issues

During Anthropic's rapid scaling, bugs likely introduced in:

  • Session garbage collection processes
  • Load balancer configuration updates
  • Database migrations affecting session storage
  • Caching layer inconsistencies between services

Impact Assessment

User Experience Impact

Account-Specific Degradation

  • Performance issues tied to user accounts, not client environments
  • Standard troubleshooting (reinstallation, new environments) ineffective
  • Creates appearance of user error rather than systematic bug

Business Impact

  • Subscription cancellations due to unusable service
  • Reduced confidence in Claude Code reliability for professional development
  • Negative community feedback affects adoption and retention

Developer Workflow Disruption

  • Inability to rely on Claude Code for consistent coding assistance
  • Time wasted on ineffective troubleshooting attempts
  • Forced migration to alternative tools and workflows

Technical Debt

Infrastructure Scaling Issues

  • Session management becomes bottleneck for user growth
  • Accumulated technical debt in session lifecycle processes
  • Monitoring gaps prevent early detection of session health issues

Why This Bug Persists

Silent Failures

Session cleanup often runs as asynchronous background processes that may fail silently without user-visible errors or proper monitoring alerts.

Distributed System Complexity

Session state scattered across multiple services (auth, routing, app servers) with eventual consistency issues and network partition recovery problems.

Load-Dependent Manifestation

Bug may only manifest under specific load conditions or certain account activity patterns, making it difficult to reproduce and debug consistently.

Recommendations

Immediate Actions

Account-Level Session Cleanup

# Administrative tool to force session cleanup
admin-tool cleanup-user-sessions --account-id <user-id> --force

User-Accessible Session Reset

# New CLI command for users to force session refresh  
claude --reset-sessions --confirm

Enhanced Diagnostics

# Session health diagnostic tool
claude --diagnose-sessions

Systemic Improvements

Session Lifecycle Monitoring

  • Implement comprehensive session creation/deletion tracking
  • Add alerting for session cleanup failures
  • Monitor session accumulation rates per account

Routing Table Health

  • Automatic routing table cleanup and validation
  • Circuit breakers for degraded server routing
  • Health checks that include session-level routing verification

Database Consistency

  • Transaction logging for session operations
  • Automated consistency checks and repair processes
  • Improved error handling and retry logic for cleanup operations

Load Balancer Enhancements

  • Dynamic routing table updates when sessions change
  • Session affinity timeout and cleanup mechanisms
  • Better integration between authentication and routing services

Long-term Architecture

Session Management Service

  • Dedicated microservice for session lifecycle management
  • Centralized session state with strong consistency guarantees
  • Event-driven cleanup processes with guaranteed delivery

Monitoring and Observability

  • Real-time session health dashboards
  • Per-account session metrics and alerting
  • Distributed tracing for session lifecycle operations

Testing and Validation

  • Automated testing of session cleanup processes
  • Load testing that includes session churn scenarios
  • Chaos engineering for session management failure modes

Conclusion

The persistent, account-specific nature of Claude Code performance issues strongly suggests a backend session management bug rather than model degradation or general service issues. The hypothesis that failed session cleanup causes sticky routing to degraded servers explains the key symptoms and provides a clear path toward resolution.

Recommended Priority Actions:

  1. Immediate session cleanup for affected accounts
  2. Enhanced monitoring of session lifecycle processes
  3. User-accessible diagnostic tools for session health
  4. Systematic architecture improvements for long-term reliability