And it was treated as potentially malformed and hence the panic. That's what panic is for! When invariants are not upheld at runtime, in Cloudflare's case an abnormal amount of entries IIRC.
I mean, if the error was handled what would you have done if not crashing the service with an error message?
I think the post's point is that you don't panic if someone submits a malformed PDF (you just reject their request) but I don't think there's any way to gracefully handle a malformed config file that is core to the service.
Continue with the previous config. If the config-loading function was fallible, and that bubbled up somewhere, someone might say, "Oh this can fail, we should do blue-green for configs the same as we do for exes." With it being infallible and a panic, that gets hidden.
If I was designing a language to surpass Rust, I'd make panics opt-in. I think Rust has a team looking into no-panic but it's a funny loophole for a language that wanted to eliminate crashes.