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should I withdraw?

Hello stident2021,

I have a very similar background as yours, started a BA in my late 20's, have some industry experience, I'm in my final year of a funded PhD (funding has already expired), etc.

My answers may sound contradictory, but one thing is that a PhD is just a qualification. If it is making you sick mentally or physically, there is no need to stick with it. On the other hand, if I were in your shoes, I will be utterly regretful if I left my PhD without completing it. It's all about my self-esteem and the sence of achievement in my life. Actually, this is the only reason why I am not leaving my PhD. I don't really care if having the degree matters for my fiture career etc.

How about taking a break from the study (if your uni allows taking an intermission), put some pressures off from your shoulders, then finish off the rest of chapters once your situation at work (hopefully) improves after this pandemic?
Meantime, whether it is realistic or not, I would accept your bosses' kind offer to take an annual leave later this year just to show my interest in their proposal and finishing the degree.