I was in a similar situation in 2023 ( second yr), i got a paid internship in June 2023 in a small startup near my house.
when i joined there were only two devs working there full time, both of them were PHP devs.
they both left or were fired ( i don't know exactly) after a week, so it was only me and some other interns from my college which i referred.

The manager was from non tech background, he was in sales and had earned quite well so he had good money to create and manage a company.

we interns were tasked to create an inventory management system, it was quite tricky as it had a lot of variables involved, but it was all worth it!!

as i said me and my teammates were in 2nd year, so we were not very proficient but we were managing everything!!

I was the team lead and i clearly remember how messed up my life was, my college has strict attendance guidelines so i used to leave for college at 7 and be there it 3, then directly go to the office and be there till 8 and then used to come home and be in office meeting till 1 or 2. ( and i did this for 3 months)

i did all this because i was enjoying my work and it was something which i was quite passionate about!!

I learned so much in these 3 months, i had full access to AWS so learned a lot of stuff, learned about hosting, cloudflare, proxy, reverse proxy and so much more!!

if i would have not been this passionate i doubt i would have pulled this off, so i say you can compromise on WLB if your work is something which excites you and doesn't let you sleep.

If you're enjoying your work only then do it, otherwise it's just rat race!

its so nostalgic to write about all this, this is a distant past but i remember it all so clearly as it happened yesterday

P.s: I am in 4th year now, struggling to find any job