## Description
Handling erroneous state in Entity item ADS template
Fixes [#40362](https://github.com/appsmithorg/appsmith/issues/40362)
## Automation
/ok-to-test tags="@tag.IDE"
### 🔍 Cypress test results
<!-- This is an auto-generated comment: Cypress test results -->
> [!TIP]
> 🟢🟢🟢 All cypress tests have passed! 🎉🎉🎉
> Workflow run:
<https://github.com/appsmithorg/appsmith/actions/runs/14639928664>
> Commit: c9b2437308f4108108ff362f0e8b51220d2dbc17
> <a
href="https://internal.appsmith.com/app/cypress-dashboard/rundetails-65890b3c81d7400d08fa9ee5?branch=master&workflowId=14639928664&attempt=1"
target="_blank">Cypress dashboard</a>.
> Tags: `@tag.IDE`
> Spec:
> <hr>Thu, 24 Apr 2025 11:32:13 UTC
<!-- end of auto-generated comment: Cypress test results -->
## Communication
Should the DevRel and Marketing teams inform users about this change?
- [ ] Yes
- [ ] No
<!-- This is an auto-generated comment: release notes by coderabbit.ai
-->
## Summary by CodeRabbit
- **New Features**
- Entity names now visually indicate errors by displaying in a distinct
color when an error state is present.
- **Style**
- Enhanced visual feedback for entities with errors, improving clarity
when issues occur.
<!-- end of auto-generated comment: release notes by coderabbit.ai -->
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