Constantly seeing "We're having trouble connecting to the model provider"

Since yesterday, I am constantly seeing the below error in Agent Mode, 100% failure rate. I am trying to use 3.7 sonnet and also gemini 2.5 pro. Tried my own API key as well, it still fails. Enabled extra usage, still the same thing.

We’re having trouble connecting to the model provider. This might be temporary - please try again in a moment.

Any suggestions as to what could be happening?

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