some comments added to make it easier for you to spot the differences :-)

private function handleTcpData(event:Event):void {
  if(_socket.bytesAvailable) { // USE IF, NOT WHILE!
    try{ // CATCH THE EXCEPTION
      var str:String = _socket.readUTF();
      updateGUI(str);
    }catch(e:Error){}
  }
}
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