I've never heard of anyone using panic for exception-style recovery. That's anathema to the whole idea of Result<T,V>. But I suppose if it's possible, it will be normal for someone.
I'm not as familiar with the Rust ecosystem, but I know it is used all the time in Go. For example, the standard http server library wraps user provided endpoint handler functions with panic handlers.
I suppose it's a matter of perspective but I don't see returning a 500 as "Recovering from the error". The user's request has still failed.
It just hasn't taken down the server. IMO this is still fine.
Is that used for application-level errors though? Rust web servers do that too, but it is used a fallback to avoid bringing down the whole server due to an unexpected crash. It is not a mechanism you would use intentionally.
