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I would not leave a job you love with those kind of hours and decent people for 40k. Thats what? 30k most after taxes? Heck no I would not leave.
If you like your manager, the culture of the company, and your hours and team. It’s not worth risking the higher pay for possible bad situation. I would ask for a raise. Do some research on what other companies are paying and present it with your request. In my experience, managers that I’ve had a good relationship with, I’ve been able to have frank off the record conversations about pay. They’ve all told me to write something up so they can present it to the higher ups. You might not get 40k but probably enough to keep you happy and not leave.
I’d stay. You have a good gig. Keep looking if you want a bump, but I’d want a much bigger bump to risk a known, good arrangement for who knows what on the other side…
What are the benefits like? PTO, incentives (cash bonus, options, etc), WFH policy?
I'd stay. Stability is not a bad thing to have, especially when that comes with a reasonable work life balance. I can't imagine uncertainty and more stress would be worth the salary difference.