[Bug]: User is logged out of AI Workspace if external MCP returns 401 when trying to add a MCP Proxy

Please select the area the issue is related to

AI Workspace

Please select the aspect the issue is related to

Aspect/API (API backends, definitions, contracts, interfaces, OpenAPI), Aspect/UI (Frontend layouts, components, styling)

Description

When an MCP proxy is added to the AI Workspace, if the backend MCP returns 401, the user is logged out of the AI Workspace app. Since it's an external service returning 401, user should not be logged out of the AI Workspace. Instead, an error should be shown in the UI.

Steps to Reproduce

1. Log into AI Workspace.
2. Add a URL of a protected MCP proxy (ex: https://mcp.atlassian.com/v1/mcp)
3. Leave 'Advanced Configurations' empty and click on 'Fetch Server Info'
4. User will be logged out of AI Workspace

Severity Level of the Issue

Severity/Minor (Non-critical functionality. Can be fixed in future releases)

Environment Details (with versions)

AI Workspace 1.0

Reproduce the issue in AI Workspace by adding a protected MCP proxy and selecting “Fetch Server Info” with Advanced Configurations empty. Trace the Fetch Server Info request and its 401 handling; done means the external 401 produces an error in the UI without logging the user out of AI Workspace.