test(examples): add wait and handler error test examples

- Add testing examples
  - wait for condition
  - handler error

- Update web runner, return error response so that we can test on funciton exception

Author: Alex Wang

.gitignore

@@ -29,6 +29,7 @@ dist/
 .kiro/
 .idea
 .env
+.env*
 
 .durable_executions
 

examples/examples-catalog.json

@@ -297,6 +297,17 @@
         "ExecutionTimeout": 300
       },
       "path": "./src/parallel/parallel_with_batch_serdes.py"
+    },
+    {
+      "name": "Handler Error",
+      "description": "Simple function with handler error",
+      "handler": "handler_error.handler",
+      "integration": true,
+      "durableConfig": {
+        "RetentionPeriodInDays": 7,
+        "ExecutionTimeout": 300
+      },
+      "path": "./src/handler_error/handler_error.py"
     }
   ]
 }

examples/src/handler_error/handler_error.py

@@ -0,0 +1,19 @@
+"""Demonstrates how handler-level errors are captured and structured in results."""
+
+from typing import Any
+
+from aws_durable_execution_sdk_python.context import DurableContext
+from aws_durable_execution_sdk_python.execution import durable_execution
+
+
+def generate_large_string(size_in_kb: int) -> str:
+    """Generate a string of approximately the specified size in KB."""
+    base_string = "B" * 1024  # 1KB string
+    return base_string * size_in_kb
+
+
+@durable_execution
+def handler(_event: Any, _context: DurableContext) -> None:
+    """Handler demonstrating handler-level error capture."""
+    # Simulate a handler-level error that might occur in real applications
+    raise Exception("Intentional handler failure")

examples/src/wait_for_condition/wait_for_condition.py

@@ -4,30 +4,25 @@
 
 from aws_durable_execution_sdk_python.context import DurableContext
 from aws_durable_execution_sdk_python.execution import durable_execution
+from aws_durable_execution_sdk_python.waits import WaitForConditionConfig, WaitForConditionDecision
 
 
 @durable_execution
 def handler(_event: Any, context: DurableContext) -> int:
     """Handler demonstrating wait-for-condition pattern."""
-    state = 0
-    attempt = 0
-    max_attempts = 5
 
-    while attempt < max_attempts:
-        attempt += 1
+    def condition_function(state: int, _) -> int:
+        """Increment state by 1."""
+        return state + 1
 
-        # Execute step to update state
-        state = context.step(
-            lambda _, s=state: s + 1,
-            name=f"increment_state_{attempt}",
-        )
-
-        # Check condition
+    def wait_strategy(state: int, attempt: int) -> dict[str, Any]:
+        """Wait strategy that continues until state reaches 3."""
         if state >= 3:
-            # Condition met, stop
-            break
+            return WaitForConditionDecision.stop_polling()
+        return WaitForConditionDecision.continue_waiting(1)
+
+    config = WaitForConditionConfig(wait_strategy=wait_strategy, initial_state=0)
 
-        # Wait before next attempt
-        context.wait(seconds=1)
+    result = context.wait_for_condition(check=condition_function, config=config)
 
-    return state
+    return result

examples/test/handler_error/test_handler_error.py

@@ -0,0 +1,32 @@
+"""Tests for handler_error."""
+
+import pytest
+from aws_durable_execution_sdk_python.execution import InvocationStatus
+
+from src.handler_error import handler_error
+
+
+@pytest.mark.example
+@pytest.mark.durable_execution(
+    handler=handler_error.handler,
+    lambda_function_name="handler error",
+)
+def test_handle_handler_errors_gracefully_and_capture_error_details(durable_runner):
+    """Test that handler errors are handled gracefully and error details are captured."""
+    test_payload = {"test": "error-case"}
+
+    with durable_runner:
+        result = durable_runner.run(input=test_payload, timeout=10)
+
+    # Verify execution failed
+    assert result.status is InvocationStatus.FAILED
+
+    # Check that error was captured in the result
+    error = result.error
+    assert error is not None
+
+    assert error.message == "Intentional handler failure"
+    assert error.type == "Exception"
+
+    # Verify no operations were completed due to early error
+    assert len(result.operations) == 0

examples/test/wait_for_condition/test_wait_for_condition.py

@@ -2,7 +2,6 @@
 
 import pytest
 from aws_durable_execution_sdk_python.execution import InvocationStatus
-from aws_durable_execution_sdk_python.lambda_service import OperationType
 
 from src.wait_for_condition import wait_for_condition
 from test.conftest import deserialize_operation_payload
@@ -21,13 +20,3 @@ def test_wait_for_condition(durable_runner):
     assert result.status is InvocationStatus.SUCCEEDED
     # Should reach state 3 after 3 increments
     assert deserialize_operation_payload(result.result) == 3
-
-    # Verify step operations exist (should have 3 increment steps)
-    step_ops = [
-        op for op in result.operations if op.operation_type == OperationType.STEP
-    ]
-    assert len(step_ops) == 3
-
-    # Verify wait operations exist (should have 2 waits before final state)
-    wait_ops = [op for op in result.operations if op.operation_type.value == "WAIT"]
-    assert len(wait_ops) == 2

src/aws_durable_execution_sdk_python_testing/runner.py

@@ -787,11 +787,10 @@ def run(
             msg = f"Lambda invocation failed with status {status_code}: {error_payload}"
             raise DurableFunctionsTestError(msg)
 
-        # Check for function errors
+        # Check for function errors, we want to return function error for testing purpose
         if "FunctionError" in response:
             error_payload = response["Payload"].read().decode("utf-8")
-            msg = f"Lambda function failed: {error_payload}"
-            raise DurableFunctionsTestError(msg)
+            logger.warning("Lambda function failed: %s", error_payload)
 
         result_payload = response["Payload"].read().decode("utf-8")
         logger.info(