This is an "Internal" preference, accessible by holding "shift" while selecting the menu item Options -> Preferences. After clicking the "Internal" tab, then search for "excep". (Seen at least in Vegas pro 13, 15, & 16)

I don't know what that preference really means. Anyone? In general programming terms it might mean for lower levels of a program to pass exceptions to a higher level of the program that is prepared to "handle" failures instead of just crashing or terminating without notice. To "handle" an exception probably does not mean to "succeed" in spite of the failure. But it might mean some aspect of the failure could be reported, and it might mean a project could be saved instead of lost.

If I were encountering mysterious crashes I would try turning on this preference. Too optimistic?