Quitting the "small" job, quitting any job risks the quality of the termination. EDD wants people working. Even a little work for a little money is better then no work for no money in their eyes. People act like the rules are carved in stone tablets, which is sort of true, but at the end of the day you are going to have a lightly trained ALJ making a decision. Make it easy for them to make their decision by not quitting.