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When 'esphome logs' processes a crash backtrace from the device, process_stacktrace -> _decode_pc -> _run_idedata can raise EsphomeError if the local build dir hasn't been populated (e.g. the device was flashed from a different machine). on_log runs inside an asyncio protocol callback, so the unhandled exception triggers 'Fatal error: protocol.data_received() call failed.', the loop tears the connection down, and ReconnectLogic immediately reconnects. The device replays the same crash trace and we loop forever. Wrap the per-line decode in a helper that swallows EsphomeError so the connection stays up. Also covered with unit tests for the new helper.