I just saw this on my cli console. As you can see the API is set up correctly and worked up to that random point.
I am using that same API with the same setup in KK VSCode and it works fine. At least if it ever ran into the same issue, it quietly recovered.
The API is an OpenAI compatible Azure endpoint behind a Microsoft APIM gateway.
⟳ API Request in progress...
✓ API Request - Cost: $0.0000
⟳ API Request in progress...
✓ API Request - Cost: $0.0000
:floppy_disk: Checkpoint Saved (e65c92396b598ba29c9e35e59e36a1e41f349bf8)
⟳ API Request in progress...
:hourglass_flowing_sand: API Request retry Could not resolve authentication method. Expected
delayed... either apiKey or authToken to be set. Or for one of the
"X-Api-Key" or "Authorization" headers to be explicitly
omitted