We also discussed whether or not it would be worth indicating in the exception that tracing has been disabled.  I believe that implementing this would be aided by resolution of issue 23188.  Doing a chained exception for this would also make it clearer that the exception happened inside the trace function.

It is not clear that it is sensible to allow tracing to continue if the trace function raises an error, since that pretty much leaves the tracer or debugger or what have you in an undefined state.  It is also not clear that there is any reasonable way to try to avoid a recursion error in the trace function when we are near the recursion limit in the underlying code, since the stack depth of the trace function is pretty much arbitrary.