fix: add timeout to psql activity command and close connection (#660)
Description
Add psql-level timeouts so it fails before the HTTP client timeout
Related issue
Examples
Checklist
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MR description has been reviewed -
MR changes are functionally tested -
MR does NOT have API/CLI changes OR there are API/CLI changes and they have been reviewed & DOCS ARE ADJUSTED (reference doc, etc) -
MR does NOT have UI changes OR there are UI changes and they have been reviewed & UX IS REVIEWED
Closes #660