diff --git a/common/src/resilience/bounded_concurrency.rs b/common/src/resilience/bounded_concurrency.rs
index c334d6410..1cebba12e 100644
--- a/common/src/resilience/bounded_concurrency.rs
+++ b/common/src/resilience/bounded_concurrency.rs
@@ -83,19 +83,21 @@ impl BoundedExecutor {
     /// # Ok(())
     /// # }
     /// ```
-    #[allow(clippy::panic)]  // Panic is acceptable here: semaphore should never close
     pub async fn execute<F, Fut, T, E>(&self, operation: F) -> Result<T, E>
     where
         F: FnOnce() -> Fut,
         Fut: Future<Output = Result<T, E>>,
     {
         // Acquire permit (blocks if limit reached)
-        let _permit = self.semaphore.acquire().await.map_err(|_| {
-            // This should never happen unless semaphore is closed, which indicates
-            // a critical internal error. Panicking is acceptable as it ensures we
-            // fail fast rather than silently corrupting state.
-            panic!("Semaphore closed unexpectedly");
-        });
+        let _permit = match self.semaphore.acquire().await {
+            Ok(permit) => Some(permit),
+            Err(_) => {
+                tracing::error!(
+                    "BoundedConcurrency: semaphore closed unexpectedly, executing without permit"
+                );
+                None
+            }
+        };
 
         // Execute operation while holding permit
         operation().await
diff --git a/ml/src/lib.rs b/ml/src/lib.rs
index 6a3ab3d73..fb2c5ce85 100644
--- a/ml/src/lib.rs
+++ b/ml/src/lib.rs
@@ -729,6 +729,10 @@ pub enum MLError {
     /// Checkpoint error
     #[error("Checkpoint error: {0}")]
     CheckpointError(String),
+
+    /// Device error (GPU/CUDA unavailable)
+    #[error("Device error: {0}")]
+    DeviceError(String),
 }
 
 // Implement From trait for candle_core::Error
@@ -838,6 +842,10 @@ impl From<MLError> for CommonError {
             MLError::InsufficientData(msg) => {
                 CommonError::validation(format!("ML insufficient data: {}", msg))
             },
+            MLError::DeviceError(msg) => CommonError::service(
+                ErrorCategory::System,
+                format!("ML device error: {}", msg),
+            ),
         }
     }
 }
@@ -990,79 +998,55 @@ pub mod universe;
 
 /// Get mandatory CUDA device for training
 ///
-/// # Panics
+/// # Errors
 ///
-/// Panics if CUDA GPU is not available with detailed error message
+/// Returns `MLError::DeviceError` if CUDA GPU is not available
 ///
 /// # Example
 ///
 /// ```no_run
 /// use ml::get_training_device;
 ///
-/// let device = get_training_device();  // Panics if no GPU
+/// let device = get_training_device().expect("GPU required");
 /// ```
-pub fn get_training_device() -> candle_core::Device {
+pub fn get_training_device() -> Result<candle_core::Device, MLError> {
     match candle_core::Device::new_cuda(0) {
-        Ok(device) => device,
+        Ok(device) => Ok(device),
         Err(e) => {
-            panic!(
-                "\n\n\
-                ╔═══════════════════════════════════════════════════════════════════╗\n\
-                ║  CUDA GPU REQUIRED FOR TRAINING                                   ║\n\
-                ╚═══════════════════════════════════════════════════════════════════╝\n\
-                \n\
-                Training requires CUDA GPU acceleration. CPU fallback is disabled.\n\
-                \n\
-                Error: {}\n\
-                \n\
-                Troubleshooting:\n\
-                \n\
-                1. Check GPU availability:\n\
-                   nvidia-smi\n\
-                \n\
-                2. Verify CUDA toolkit installation:\n\
-                   nvcc --version\n\
-                \n\
-                3. Check CUDA libraries are in LD_LIBRARY_PATH:\n\
-                   echo $LD_LIBRARY_PATH | grep cuda\n\
-                \n\
-                4. Ensure project built with CUDA feature:\n\
-                   cargo build --release --features cuda\n\
-                \n\
-                5. Check CUDA environment variables:\n\
-                   echo $CUDA_HOME\n\
-                   ls $CUDA_HOME/lib64/\n\
-                \n\
-                If GPU is unavailable, training cannot proceed.\n\
-                \n",
+            tracing::error!(
+                "CUDA GPU not available: {}. \
+                 Troubleshooting: (1) nvidia-smi, (2) nvcc --version, \
+                 (3) check LD_LIBRARY_PATH, (4) cargo build --features cuda, \
+                 (5) check CUDA_HOME",
                 e
             );
-        },
+            Err(MLError::DeviceError(format!(
+                "CUDA GPU required but unavailable: {}",
+                e
+            )))
+        }
     }
 }
 
 /// Get CUDA device with index (for multi-GPU setups)
 ///
-/// # Panics
+/// # Errors
 ///
-/// Panics if CUDA GPU at specified index is not available
-pub fn get_training_device_at(device_id: usize) -> candle_core::Device {
+/// Returns `MLError::DeviceError` if CUDA GPU at specified index is not available
+pub fn get_training_device_at(device_id: usize) -> Result<candle_core::Device, MLError> {
     match candle_core::Device::new_cuda(device_id) {
-        Ok(device) => device,
+        Ok(device) => Ok(device),
         Err(e) => {
-            panic!(
-                "\n\n\
-                ╔═══════════════════════════════════════════════════════════════════╗\n\
-                ║  CUDA GPU {} NOT AVAILABLE                                       ║\n\
-                ╚═══════════════════════════════════════════════════════════════════╝\n\
-                \n\
-                Error: {}\n\
-                \n\
-                Check available GPUs with: nvidia-smi\n\
-                \n",
-                device_id, e
+            tracing::error!(
+                "CUDA GPU {} not available: {}. Check available GPUs with: nvidia-smi",
+                device_id,
+                e
             );
-        },
+            Err(MLError::DeviceError(format!(
+                "CUDA GPU {} required but unavailable: {}",
+                device_id, e
+            )))
+        }
     }
 }