Gatsby not returning API error

[MohammedQureshi]

Preliminary Checks

• This issue is not a duplicate. Before opening a new issue, please search existing issues: https://github.com/gatsbyjs/gatsby/issues
• This issue is not a question, feature request, RFC, or anything other than a bug report directly related to Gatsby. Please post those things in GitHub Discussions: https://github.com/gatsbyjs/gatsby/discussions

Description

I have got a project set up with Gatsby and Springboot (Java) and I am able to do an API call from Gatsby to Springboot and create a user in my backend but if I get an error some reason Gatsby can't handle it such as I have a validation error that returns "User is not unique" but on Gatsby it just says Internal Server Error but if the API request is successful it works fine it says User Added. Does Gatsby not allow error handling? I am also using a proxy on Gatsby for CORS issues.

Reproduction Link

Non published

Steps to Reproduce

1. Axios function request
2. Send Invalid Data
3. Get response Internal Server Error
   ...

Expected Result

User has to be Unique

Postman response:
"timestamp": 1639313458756,
"status": 400,
"message": "Validation error",
"url": "/api/1.0/users",
"validationErrors": {
"username": "User has to be Unique"
}

Actual Result

Internal Server Error

Environment

System:
    OS: Windows 10 10.0.22000
    CPU: (16) x64 AMD Ryzen 7 5700U with Radeon Graphics
  Binaries:
    Node: 16.13.0 - ~\AppData\Local\Temp\yarn--1639316124987-0.049950630018706255\node.CMD
    Yarn: 1.22.17 - ~\AppData\Local\Temp\yarn--1639316124987-0.049950630018706255\yarn.CMD
    npm: 8.1.0 - C:\Program Files\nodejs\npm.CMD
  Browsers:
    Edge: Spartan (44.22000.120.0), Chromium (96.0.1054.53)
  npmPackages:
    gatsby: ^3.13.0 => 3.14.6
    gatsby-cli: ^3.13.0 => 3.14.2
    gatsby-image: ^3.11.0 => 3.11.0
    gatsby-plugin-google-analytics: ^3.13.0 => 3.14.0
    gatsby-plugin-image: ^1.13.0 => 1.14.2
    gatsby-plugin-manifest: ^3.13.0 => 3.14.0
    gatsby-plugin-react-helmet: ^4.13.0 => 4.14.0
    gatsby-plugin-react-svg: ^3.0.1 => 3.1.0
    gatsby-plugin-sass: ^4.13.0 => 4.14.0
    gatsby-plugin-sharp: ^3.14.0 => 3.14.3
    gatsby-plugin-sitemap: ^4.9.0 => 4.10.0
    gatsby-source-filesystem: ^3.13.0 => 3.14.0
    gatsby-transformer-sharp: ^3.14.0 => 3.14.0

Config Flags

No response