MuleSoft: Understanding Exception Handling

I have been approached by several developers taking the Any point Platform Development: Fundamentals (Mule 4) training about the Exception Handling and the different scenarios in Module 10. The way it is described can be confusing. So here is how I understand it. Any MuleSoft flow like the one below

How this would be executed? Any Point studio and MuleSoft Runtime would convert it into a Java byte code. So it would be generated as a method or a function in Java. MuleSoft would put the code for this function within a Try -catch scope. If you have defined exceptions handlers in the error handling module it will emit code to catch and handle those exceptions. If there is not and there is a global error handler, it will emit code for the catch exceptions of the global error handler. Here is the thing that catches developers by surprise. If you have defined local handlers, then those cases are the only cases that would be handled and not the combination of the local cases and global error handler case, only one of them if there is a local error handler defined then that is it if there is not then the global error handler is emitted as catch cases

The 2^nd point is On Error Propagate and On Error Continue options. If you chooser on Error Propagate then the coded emitted will throw the caught exception at the end of each catch. If you chose On Error continue then the Exception is not thrown. Think of it as if the code written below If you have been a Java , C#, C++. Or Python developer you should understand this basic programming concepts.

public void MianMethod(){
try {
OnErrorPropagate();
OnErrorContinue();
} catch (Exception E)
{
// default handler or global handler if defined
}
}
public void OnErrorPropagate() throws EOFException
{
try{
throw new EOFException();
}
catch( EOFException e)
{
Logger.getLogger(“ExceptionHandler”).log(Level.SEVERE,“Errot”,e.toString());
throw e;
}
}
public void OnErrorContinue()
{
try{
throw new EOFException();
}
catch( EOFException e)
{
Logger.getLogger(“ExceptionHandler”).log(Level.SEVERE,“Errot”,e.toString());

}
}
Hope this helps