Nicely handle errors when processing requests

[qdeslandes]

If a failure occurs during request processing, the daemon should print an error message and process the next request. It should not be possible to put the daemon in a failure state from a failing request, so there is no reason for the daemon to stop.

[Copilot]

Pull Request Overview

This PR refactors error handling in the daemon's main loop to prevent individual request failures from terminating the entire daemon process. Instead of returning early on errors, the daemon now logs errors and continues processing subsequent requests.

• Replaced early returns with continue statements for error conditions
• Changed error logging levels from warnings to errors for some failure cases
• Updated error messages to clarify that requests are being ignored rather than causing daemon shutdown

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