FTL is offline after update to 4.0

First confirm if you still have same status error:

If so, you can try change ownership of that file like @technicalpyro previously posted (with sudo this time):

sudo touch /var/lib/misc/dnsmasq.leases

sudo chown pihole:pihole /var/lib/misc/dnsmasq.leases

Restart:

sudo systemctl restart pihole-FTL

And check again:

sudo systemctl status pihole-FTL -l

Source of that dnsmasq.leases file is probably revealed if you run below one (dont skip the .*):

grep -v '#\|^$' -R /etc/dnsmasq.*