No personal experience, but hugs.
What does the teacher recommend? Are others besides the class teacher involved (eg learning support), and what do they think? Do you need their support, or to meet certain guidelines before he can repeat? What about the OT? Sounds like he doesn't have a heap of friends he'd be leaving behind, so that's a positive. An extra year might give him confidence and social skills as well as the opportunity to develop those fine motor skills.
GL with your decision.
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