InvalidPluginExecutionException error dialog not showing up – Dynamis 365 / Dataverse

One of the reasons why throwing the InvalidPluginExecutionException doesn’t show up error dialog could be that you would have Profiled that step with profile storage as Persist to Entity.

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Use InvalidPluginExecutionException in plug-ins and workflow activities

If a synchronous plug-in returns an exception other than InvalidPluginExecutionException back to the platform, in a Power Apps client an error is displayed to the user with the message of the exception Message and the stack trace. This provides an unfriendly user experience in what is likely already a frustrating situation.

https://learn.microsoft.com/en-us/power-apps/developer/data-platform/best-practices/business-logic/use-invalidpluginexecutionexception-plugin-workflow-activities

Cancelling the current operation

The way exceptions are managed in plug-ins depends on the type of plug-in step registration.

• Exceptions for synchronous plug-in steps will cancel and rollback the operation. You have the ability to control the message returned to the user.
• Exceptions for asynchronous plug-in steps will be logged and added to the System Job table, also known as the AsyncOperation Table.

https://learn.microsoft.com/en-us/power-apps/developer/data-platform/handle-exceptions#cancelling-the-current-operation