My team is careful around me because they fear my reactions. How do I fix that?

It takes something to admit this. You are not a tyrant, and you know it, which is exactly why this stings. The care your team shows around you is not respect. It is management. Over time your reactions when things went wrong taught them to handle you, and now a quiet wariness sits under the good manners. Here is the thing worth holding onto: people only manage what they cannot predict or trust. If your team is walking carefully, it is because at some point your response to bad news felt bigger than the news itself. That is a pattern, and patterns can be unlearned. The awareness you already have is where the change begins. Watch your first reaction the next time something goes wrong. Before you speak, take a breath and choose the calm response instead of the sharp one. Do it consistently, and consider saying plainly that you want the hard truths sooner. Trust returns slowly, through many small moments where you proved safe to approach.