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The error reporting level that encompasses all errors in PHP, including notices, is E_ALL. This level is crucial for development and debugging because it ensures that not only critical errors (such as fatal errors and warnings) are captured, but also less severe issues like notices.

Notices, although they may not halt script execution, can indicate potential problems or areas in the code that may require attention. By using E_ALL, developers ensure they have a comprehensive view of all issues in their code, which can lead to better coding practices and overall application stability.

Other error reporting levels, such as E_ERROR, capture only fatal errors that stop script execution, whereas E_WARNING includes runtime warnings that do not stop execution but do not cover all error types. E_NOTICE is even more limited, reporting only notifications and does not include warnings or errors. Therefore, for thorough error tracking, E_ALL is the most appropriate choice.