fix(core-storage): Error Handling

Ref: #5472

libs/core/storage/src/lib/storage-providers/user.storage-provider.ts

@@ -38,22 +38,52 @@ export class UserStorageProvider implements StorageProvider {
     filter((authenticated) => authenticated),
     switchMap(() =>
       this.#userStateService.UserStateGetUserState().pipe(
-        catchError((error) => {
-          if (error instanceof HttpErrorResponse && error.status === 404) {
-            return [DEFAULT_USER_STATE_RESPONSE];
-          }
-          return throwError(() => error);
-        }),
         retry({
           count: 3,
           delay: (error, retryCount) => {
+            // Don't retry on 404 - it's expected for new users
+            if (error instanceof HttpErrorResponse && error.status === 404) {
+              this.#logger.debug(
+                'User state not found (404) - using empty state',
+              );
+              throw error; // Stop retrying
+            }
+
+            // For other errors (including 503), retry with exponential backoff
             this.#logger.warn('Retrying user state load', () => ({
               attempt: retryCount,
               error: error.message,
+              status:
+                error instanceof HttpErrorResponse ? error.status : 'unknown',
             }));
-            return timer(1000 * retryCount); // Exponential backoff with timer
+            return timer(1000 * retryCount); // Exponential backoff: 1s, 2s, 3s
           },
         }),
+        catchError((error) => {
+          // After all retries failed (or 404 encountered), return default state
+          if (error instanceof HttpErrorResponse) {
+            if (error.status === 404) {
+              this.#logger.info(
+                'User state not found - initializing with empty state',
+              );
+            } else {
+              this.#logger.error(
+                'Failed to load user state after retries - initializing with empty state',
+                error,
+                () => ({
+                  status: error.status,
+                  statusText: error.statusText,
+                }),
+              );
+            }
+          } else {
+            this.#logger.error(
+              'Unexpected error loading user state - initializing with empty state',
+              error as Error,
+            );
+          }
+          return [DEFAULT_USER_STATE_RESPONSE];
+        }),
       ),
     ),
     tap((res) => {