[Monitor OpenTelemetry Exporter] Update Span Exception Emitting Logic (#31417)

### Packages impacted by this PR
@azure/monitor-opentelemetry-exporter

### Describe the problem that is addressed by this PR
Exceptions should only be emitted from top level spans or those with a
remote parent.

### What are the possible designs available to address the problem? If
there are more than one possible design, why was the one in this PR
chosen?


### Are there test cases added in this PR? _(If not, why?)_
Yes, tests are updated.

### Command used to generate this PR:**_(Applicable only to SDK release
request PRs)_

### Checklists
- [x] Added impacted package name to the issue description
- [ ] Does this PR needs any fixes in the SDK Generator?** _(If so,
create an Issue in the
[Autorest/typescript](https://github.com/Azure/autorest.typescript)
repository and link it here)_
- [x] Added a changelog (if necessary)

sdk/monitor/monitor-opentelemetry-exporter/CHANGELOG.md

@@ -8,6 +8,7 @@
 - Updated OTel dependencies.
 - Update Statsbeat shutdown logic to include more status codes for shutdown.
 - Add non-essential statsbeat metrics.
+- Update logic for when to emit exceptions.
 
 ## 1.0.0-beta.25 (2024-08-14)
 

sdk/monitor/monitor-opentelemetry-exporter/src/utils/spanUtils.ts

@@ -3,7 +3,16 @@
 
 import { ReadableSpan, TimedEvent } from "@opentelemetry/sdk-trace-base";
 import { hrTimeToMilliseconds } from "@opentelemetry/core";
-import { diag, SpanKind, SpanStatusCode, Link, Attributes } from "@opentelemetry/api";
+import {
+  diag,
+  SpanKind,
+  SpanStatusCode,
+  Link,
+  Attributes,
+  SpanContext,
+  isValidTraceId,
+  isValidSpanId,
+} from "@opentelemetry/api";
 import {
   DBSYSTEMVALUES_MONGODB,
   DBSYSTEMVALUES_MYSQL,
@@ -414,7 +423,19 @@ export function spanEventsToEnvelopes(span: ReadableSpan, ikey: string): Envelop
 
       // Only generate exception telemetry for incoming requests
       if (event.name === "exception") {
-        if (span.kind === SpanKind.SERVER) {
+        let isValidParent = false;
+        const parentSpanContext: SpanContext | undefined = span.parentSpanId
+          ? span.spanContext()
+          : undefined;
+        if (parentSpanContext) {
+          isValidParent =
+            isValidTraceId(parentSpanContext.traceId) && isValidSpanId(parentSpanContext.spanId);
+        }
+        /*
+         * Only generate exception telemetry for children of a remote span,
+         * internal spans, and top level spans. This is to avoid unresolvable exceptions from outgoing calls.
+         */
+        if (!isValidParent || parentSpanContext?.isRemote || span.kind === SpanKind.INTERNAL) {
           name = "Microsoft.ApplicationInsights.Exception";
           baseType = "ExceptionData";
           let typeName = "";

sdk/monitor/monitor-opentelemetry-exporter/test/internal/spanUtils.test.ts

@@ -1218,13 +1218,13 @@ describe("spanUtils.ts", () => {
     });
   });
   describe("#spanEventsToEnvelopes", () => {
-    it("should create exception envelope for server exception events", () => {
+    it("should create exception envelope for remote exception events", () => {
       const testError = new Error("test error");
       const span = new Span(
         tracer,
         ROOT_CONTEXT,
         "parent span",
-        { traceId: "traceid", spanId: "spanId", traceFlags: 0 },
+        { traceId: "traceid", spanId: "spanId", traceFlags: 0, isRemote: true },
         SpanKind.SERVER,
         "parentSpanId",
       );
@@ -1267,7 +1267,7 @@ describe("spanUtils.ts", () => {
         tracer,
         ROOT_CONTEXT,
         "parent span",
-        { traceId: "traceid", spanId: "spanId", traceFlags: 0 },
+        { traceId: "4bf92f3577b34da6a3ce929d0e0e4736", spanId: "00f067aa0ba902b7", traceFlags: 0 },
         SpanKind.CLIENT,
         "parentSpanId",
       );
@@ -1281,6 +1281,25 @@ describe("spanUtils.ts", () => {
       assert.ok(envelopes.length === 0);
     });
   });
+  it("should create an envelope for internal exception span events", () => {
+    const testError = new Error("test error");
+    const span = new Span(
+      tracer,
+      ROOT_CONTEXT,
+      "parent span",
+      { traceId: "4bf92f3577b34da6a3ce929d0e0e4736", spanId: "00f067aa0ba902b7", traceFlags: 0 },
+      SpanKind.INTERNAL,
+      "parentSpanId",
+    );
+    span.recordException(testError);
+    span.end();
+    const envelopes = spanEventsToEnvelopes(span, "ikey");
+
+    const expectedTags: Tags = {};
+    expectedTags[KnownContextTagKeys.AiOperationId] = span.spanContext().traceId;
+    expectedTags[KnownContextTagKeys.AiOperationParentId] = "spanId";
+    assert.ok(envelopes.length === 1);
+  });
   it("should create message envelope for span events", () => {
     const span = new Span(
       tracer,