The operation performing hot reload, called by the extension, allows to check that there are no dependencies mismatches between the server and the Studio project.
For instance, if the Studio project is aligned on 8.3, it might not hold accurate extensions for a 8.10 server. Or if the Studio project requires the DAM addon, hot reload might break the application.
So it would be better to warn the user about the dependency mismatch, like the "update snapshot" button does in the admin center view, when it is detected. The operation should also give details about the issue, and allow to "update anyway" (by calling again the operation, but disabling validation)