Champion Level 3Script Failure - errors caused by issues in the test script itself e.g. object not found due to incorrect alias, syntax error, logic error, etc.
Application Issue - errors due to the application under test misbehaving e.g. crash, incorrect UI behaviour, unexpected error dialog, etc.
You could wrap test steps within try-catch blocks and categorise the errors accordingly i.e. using pmHigher in Log.Error() method. You can also iterate over the log items and segregate based on ErrorType.
Refer to https://support.smartbear.com/testcomplete/docs/reference/project-objects/test-log/log/index.html and https://support.smartbear.com/testcomplete/docs/reference/project-objects/project/index.html including sub topics.
This is something that I have not implemented, as I have kept the automation as simple as possible, so that other QA's can contribute to scripting without knowing much about programming, and diagnose issues too.
