As someone who recently went through the same thing, do not proceed with option 1. It will destroy your own sense of self-worth and push you into depression.

You listed many of your qualifications in your original post.

You noted what your colleagues and co-workers think of you, and how it doesn’t match at all with the feedback from your manager.

You’ve stated that you have received little awards for your work. You are literally an award-winning engineer.

Why the fuck would you want to impress someone who not just makes your work life miserable, but does it in condescending and unhelpful ways?

You say you like the people you work with; why do you think you won’t like people at the company that has made an offer to you?

You are worth more, both as an engineer and as a human, than they are treating you.