Throwing an error in Azure Storage Queue Trigger

Question

I am calling an external API in my azure storage queue trigger which itself, is initiated by another endpoint. Calling the external API might fail, therefore I would like throw an error so that my host.json parameters will apply:

  "extensions": {
    "queues": {
      "maxPollingInterval": "00:00:01",
      "visibilityTimeout": "00:00:30",
      "batchSize": 16,
      "maxDequeueCount": 5,
      "newBatchThreshold": 8,
      "messageEncoding": "base64"
    }
  }

Simplified code:

export async function cashbackStorageQueueTrigger(
    queueItem: unknown,
    context: InvocationContext
): Promise<void> {
    try {
        const {
            // ...props
        } = queueItem;
        // Requesting the cashback
    } catch (error) {
        context.error("Error processing cashback request: ", error);
        throw new Error(`Error processing cashback request: ${error}`);
    }
}

The above code does not trigger the storageQueueTrigger again. Invocation Details show "succeeded" even though the API call has failed. Am I doing something wrong?