Improve network proxy error handling

The current implementation of the network proxy exhibits some anti-patterns in logging and error-handling that should be migrated to a form more similar to that found in the rest of the project.

Locate the network proxy implementation and compare its logging and error-handling patterns with the rest of the Go project. Identify the specific anti-patterns and the corresponding project conventions before changing anything. Done means the proxy follows those conventions consistently, with its existing behavior preserved.

Written by the indexing model from the issue text.