Should Test Execute honor on error properties?

Error: Same for both TC and TE

I started with a clean new project and only put 1 test in to simplify things:

TC test first:

I ran a tested app with the script below:

function RunWellExplorer()
{
Log.Enabled=false
Delay(3000)
TestedApps.WellExplorer.Run()
Delay(30000)
Log.Enabled=true
}

After about 20 seconds my app was open on the left with the error I expected in the log:

Closed TC and launched TE, ran the same script.  My app tried to start and closed after about 20 seconds.  Everything appears the same as TC

In the windows event logger, same error only the case is different.