Thanks @eskimo. The error is NSXPCConnectionInterrupted (4097). The UI app is not sandboxed, it will be deployed with Developer ID for internal use. The call is coming from a SwiftUI Button action that the user taps on, and works correctly for functions that don't have a reply block.
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Correction, we are now getting the NSCocoaErrorDomain Code=4099 error. But at some point yesterday it was 4097.
@eskimo I think I got it. NSXPCConnection invalidate() was being called too early in the client. Still have some learning to do for managing the connection state.