"Reached max token limit" keeps appearing even though I'm using BYOK via Azure Foundry

[ot513]

Foundry Toolkit for VS Code keeps popping up with a message saying "You have reached max token limit. Increase the limit or start a new chat" whilst processing a rqeuest. Whilst it's popping up, it does look as though its able to retry and proceed but this pop-up seems to be slowing it down/disrupting the flow. I can see in the Azure output terminal that its reconnecting to the Azure subscription each time it bumps into this error.

Unclear what this is referring to or how I change the limit if I'm using Azure Foundry and Foundry Toolkit extension. There shouldn't be a max token limit if you're BYOK? I don't believe I'm maxxing out on the Azure Foundry limits as they're set to 10,000 per minute and 10,000,000 tokens per minute.

I have set the BYOK utility model to an Azure Foundry model as well.

VS Code:
Version: 1.129.1 (user setup)
Commit: 8a7abeba6e03ea3af87bfbce9a1b7e48fed567b8
Date: 2026-07-17T15:35:09Z
Electron: 42.6.0
ElectronBuildId: 14623276
Chromium: 148.0.7778.280
Node.js: 24.18.0
V8: 14.8.178.38-electron.0
OS: Windows_NT x64 10.0.26200

Foundry Toolkit version:
Identifier: ms-windows-ai-studio.windows-ai-studio
Version: 1.6.5

[a1exwang]

Hi @ot513, thanks for the feedback. Could you clarify where you see the error? Is it Foundry Toolkit's model playground or github copilot chat using BYOK models from Foundry Toolkit? Do you have any screenshots or logs?

[ot513]

The notification is attributed to Foundry Toolkit. It triggers when an activity is taking place during a Copilot Chat (e.g. processing my prompt). It seems to only be happening when activity is taking place with editing my files. If I'm asking it to provide a response within the chat view, I don't get the error.

Output panel shows this:
2026-07-28 08:43:54.254 [warning] [ToolUseHandler] Invalid tool use argument for toolu_[REDACTED]: "{"filePath": "C:[REDACTED][REDACTED].md""
2026-07-28 08:43:55.260 [info] [AzureResourcesAuthProvider] Using project info: tid=[REDACTED_TENANT_ID], sub=[REDACTED_SUBSCRIPTION_ID], account=[REDACTED_EMAIL]
2026-07-28 08:43:55.261 [info] [AzureResourcesAuthProvider] Found subscription matching project info: [REDACTED_SUBSCRIPTION_NAME]
2026-07-28 08:43:55.261 [info] [AzureResourcesAuthProvider] Selected subscription: [REDACTED_SUBSCRIPTION_NAME] ([REDACTED_SUBSCRIPTION_ID])