Does anyone have any idea of what is going wrong?
Here is an example...Erlang defines a function error/2 , known as a BIF or Built In Function, which can be called like this:

-module(a).
-compile(export_all).

go(X, Y) ->
    case X > 10 of
        true -> error(bad_arg, [X, Y]);
        false -> ok
    end,
    io:format("hello\n").

In the shell:

4> c(a).
a.erl:2: Warning: export_all flag enabled - all functions will be exported
{ok,a}

5> a:go(1, 2).
hello
ok

6> a:go(11, 2).
** exception error: bad_arg
     in function  a:go/2
        called as a:go(11,2)
7>

Now, look what happens if you define a function also named error/2 in your module:

-module(a).
-compile(export_all).

error(X, Y) ->
   io:format("X = ~w, Y = ~w~n", [X,Y]). 

go(X, Y) ->
    case X > 10 of
        true -> error(bad_arg, [X, Y]);
        false -> ok
    end,
    io:format("hello\n").

In the shell:

8> c(a).
a.erl:2: Warning: export_all flag enabled - all functions will be exported

a.erl:9: Warning: ambiguous call of overridden auto-imported BIF error/2
 - use erlang:error/2 or "-compile({no_auto_import,[error/2]})." to resolve name clash
{ok,a}

The warning tells you that if you really meant to call erlang's error/2 , then you should preceed the function name with the module name in which the function is defined, namely the erlang module:

case X > 10 of
    true -> erlang:error(bad_arg, [X, Y]);

...or, if you want to call your version of error/2 , then put the module directive:

-compile({no_auto_import,[error/2]}).

at the top of your module:

-module(a).
-compile(export_all).
-compile({no_auto_import,[error/2]}).

error(X, Y) ->
   io:format("X = ~w, Y = ~w~n", [X,Y]). 

go(X, Y) ->
    case X > 10 of
        true -> error(bad_arg, [X, Y]);
        false -> ok
    end,
    io:format("hello\n").

11> c(a).       
a.erl:2: Warning: export_all flag enabled - all functions will be exported
{ok,a}

Note that the problem in the code is only a warning , and when I run my program as originally written, erlang calls the version of error/2 defined in my module--not the one in the erlang module.
The strange thing is: there is no error/3 defined in the erlang module.