OL-1226 — Proxy configuration is invalid
What happened
The proxy configuration itself is malformed: an unparsable proxy URL, a scheme missing a credential field it requires, or allow_direct and the proxy settings contradicting each other. Unlike every other code in this block — each describing a runtime network condition that never blocks startup — this one DOES fail startup: a config the client cannot even parse is an authoring bug, not a transient network state, and letting the daemon start with it would only move the failure to the first request.
What to do
Correct the proxy with openlatch system proxy set, or remove it with openlatch system proxy clear, then run openlatch start.