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[Bug]: Creating MCP proxies without proper authorization tokens logs the user out of the workspace #3173

Description

@Pranavan-S

Please select the area the issue is related to

AI Workspace

Please select the aspect the issue is related to

Aspect/UI (Frontend layouts, components, styling)

Description

When setting up an MCP proxy for a secured server, omitting the required credentials triggers an unexpected workspace logout. The system terminates the active session rather than preventing the action and displaying a UI error.

Steps to Reproduce

  1. Login to AI workspace and navigate to create MCP proxies
  2. Enter GitHub's official MCP server URL: "https://api.githubcopilot.com/mcp/"
  3. Click Fetch Info
  4. User is logged out

Severity Level of the Issue

Severity/Critical (Core functionality is broken but there is a workaround. Need urgent attention)

Environment Details (with versions)

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