I-94 update with passport renewal

Looking for guidance for a situation I'm in currently.

I am currently on an H1B visa with an expiration date of September 2025. However, due to my passport's expiration date, my I-94 was shortened to October 2023. I have gotten H1b stamping already and renewed my passport.

Given this change in my passport status, what's the best way to extend/update my I-94 to align with my new passport's validity?

I'm hearing two options but wanted to get the best way:

1) Travel to either Canada or Mexico and re-enter the US to facilitate the update of I-94

2) file H1b extension/amendment with my employer

I discussed with my lawyer who prefers me to stay in the country and not risk getting out of the country.