MCP tool errors (ToolError, McpError) are expected user-facing errors from external MCP servers (e.g., "No connected account found"). These were propagating through @trace_method decorator and being recorded as errors in Datadog APM. Changes: - Add try/except to catch expected MCP errors in ExternalMCPToolExecutor - Return ToolExecutionResult with status="error" instead of re-raising - Log expected errors at INFO level instead of letting them trace as ERROR - Remove stray 'pass' statement that was a no-op Fixes #8685 🤖 Generated with [Letta Code](https://letta.com) Co-authored-by: letta-code <248085862+letta-code@users.noreply.github.com> Co-authored-by: datadog-official[bot] <datadog-official[bot]@users.noreply.github.com> Co-authored-by: Kian Jones <11655409+kianjones9@users.noreply.github.com>