Closes #16474 .

Just sys.exit(process.returncode) would be fine here, but for the sake of consistency with the rest of the code, I went for the exit_with_error utility. The server process is expected to run for ever until stopped, so we should never get a 0 exit code from the process, hence there is no need for a ternary condition here.

I also went ahead and removed the bare except right above - all it did was log the error and continue, and this only hides potential errors and causes issues similar to the one I faced.

In my view, this is a bugfix, but I suppose some clients could depend on the 0 exit code here in theory? I have not familiarized with your versioning process so let me know if I should bump the patch version or something as part of this.

Help needed: Seems like the CI pipeline times out after 15 minutes. Could be my new test was "the straw that broke the camels back"? Any advice welcome.

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