Help me, please. Encountered retryable error from model provider: Agent execution terminated due to error

Hi,

I have been encountering a persistent blocker all day today while trying to build an app.

The system constantly throws these two errors after running for a few seconds:

“Encountered retryable error from model provider: Agent execution terminated due to error.”

“An internal error occurred.”

Here is the exact context and the troubleshooting steps I have already taken to isolate the issue:

Model used: Gemini 3.7 Flash.

Initial state: I hit the “out of free generations today” limit earlier.

Action taken: I went to Google AI Studio, created a new API key, and successfully set up a Tier 1 (Prepay) billing account.

Account status: I added ~$40 to the Google Cloud account. The project dashboard clearly shows the “Pay per request” badge and the payment was confirmed.

Environment reset: I updated the API key in my platform’s environment secrets, hard-refreshed the workspace, and completely restarted the session.

Testing: I tried sending extremely simple prompts (to rule out complex context windows or infinite loops), but the agent execution is still terminated every single time.

Since my billing is active and the API key is freshly linked, is there currently a known outage with Gemini 3.7 Flash agents, or is there an additional backend GCP configuration I need to enable for third-party platforms to bypass this specific termination error?

Any insights would be highly appreciated. Thank you!