A blue screen of death as caused in this case is also a controlled crash, in fact. The processor has fired an interrupt indicating invalid memory access and piece of windows code does some emergency logic, namely, dump memory so you can maybe diagnose it later, and reboot.

The reboot part happens because the system is assumed to be in a bad state and allowing it to continue would possibly corrupt data, or in the worst possible case execute exploit code.

This panic handler runs in the same privilege as the faulty driver and can itself be prevented from running correctly. Notably file system drivers are required to function correctly to write the memory dump. If they, or filter drivers attached to them, also fault, well, fun times.

You can have faults in an interrupt handler too, for example trying to access paged memory in a page fault handler. That'll trigger a double fault handler and if you fault in that, the processor will perform a reset and not bother even notifying software. Luckily the double fault handlers and other such cases are usually solely the preserve of OS vendors.

I have no particular point except to illumate what's going on and that processors (in this case x86 terminology is used) and that actually recognizing and aborting from an invalid state is exactly what's happening here and what rust memory safety does. In spite of the disruption that's better than silently corrupting data.