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7.5On Error Propagate

This means:

“Run my error-handling logic, but the operation is still considered failed.”

Example:

Salesforce Upsert
      ↓
CONNECTIVITY error
      ↓
log meaningful context
      ↓
On Error Propagate
      ↓
flow fails

Mule rethrows/propagates the error to its parent context. If the handler owns a transaction, propagation can cause that transaction to roll back.

Conceptually:

catch (error) {
    log(error);
    throw error;
}