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

#660

Examples

Checklist

  • 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

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