Ionic Custom Auth callback on error function not triggered

I am having a problem trying to get Ionic Auth custom login in my app using the app login form instead of using the inAppBrowser to go to an outside webform. I can successfully login a user, but will never call the fail function if I enter invalid credentials, etc. I have tested the php script an it works, returns the correct info, etc. I have a feeling it has something to do with the redirect_uri or the way I am handling the exception and 401 at the end of the script. Any ideas?

Like I said, the success function works fine. Only when the php script throws an exception does it not trigger the error callback.

Here is my login function.

$scope.login = function (userLogin) {

        var loginOptions = {'inAppBrowserOptions': {'hidden': true}};

        $ionicAuth.login('custom', userLogin, loginOptions).then(function (data) {
            Alert.showAlert('Success',JSON.stringify(data));
        },function(err){
            Alert.showAlert('Failed:',JSON.stringify(err));
        });
}

PHP CustomAuth:

<?php
// custom authentication for Ionic Apps
/**
 * @param string GET parameter token.
 * @param string GET parameter state.
 * @param string GET parameter redirect uri.
 * @return string Redirect URI.
 * @throws Exception
 */

require_once('../vendor/autoload.php');

use \Firebase\JWT\ExpiredException;
use \Firebase\JWT\JWT;

include($_SERVER['DOCUMENT_ROOT']."/connect/config.php");   


try {
    if (isset($_GET['token']) && isset($_GET['state']) && isset($_GET['redirect_uri'])) {

        $token          = $_GET['token'];
        $state          = $_GET['state'];
        $redirect_uri   = $_GET['redirect_uri'];

        $decoded    = JWT::decode($token, SECRET_KEY, array('HS256'));

        $email      = $decoded->data->email;
        $password   = $decoded->data->password;

        $results    = mysqli_query($dbc, "SELECT userID, fname, lname, userName, password, active FROM v_311users WHERE email='".$email."' LIMIT 1");
        $res_match  = mysqli_num_rows($results);
        $res        = mysqli_fetch_assoc($results);

        if ($res_match == 1){

            $userID     = $res['userID'];
            $active     = $res['active'];
            $pw         = $res['password'];
            $fname      = $res['fname'];
            $lname      = $res['lname'];


            if (password_verify($password, $pw)) {           

                if($active == 1){           

                    $custom->name = $fname.' '.$lname;
                    $custom->email = $email;
                    $payload = ['user_id'   => $userID,  'custom' => $custom];

                    $token = JWT::encode($payload, SECRET_KEY);                 

                    $url = $redirect_uri . '&' . http_build_query([
                        'token' => $token,
                        'state' => $state,
                        # TODO: Take out the redirect_uri parameter before production
                        //'redirect_uri' => 'https://api.ionic.io/auth/integrations/custom/success',
                    ]);

                    header('Location: '.$url);
                    exit();
                } else {
                    throw new Exception('Account Not Activated', 40);   
                }
            } else {
                throw new Exception('Invalid Credentials', 30);
            }
        } else {
            throw new Exception('Account Not Found', 20);
        }


    } else {
        // something failed with POST, should never get here!
         throw new Exception('Missing Parameters', 10);
    }

} catch (Exception $e) {
    header("HTTP/1.1 401 Unauthorized");
    echo json_encode(['error' => $e->getMessage(), 'code' => $e->getCode()]);
}

?>