How to Recover from Manual Action Penalty from Google

[aimdentalmarketing]

Need Best Strategy for Switching Domains and Using 301 Redirect

What is the best method for changing to a new domain?
We had a domain that was issued a manual penalty. We have not been able to recover in over 2 years.  We have attempted to remove some of the unnatural links and we have submitted a comprehensive disavow to Google, which includes all of the unnatural (poor) links. 

Which option is the best to recover and rank again on the 1st page of Google for competitive keywords:

Option A: If we use a new domain, will we see a negative effect after we issue a complete 301 redirect from the OLD domain to the NEW domain? If we do issue a 301 redirect, what is the level of importance to completely correct our OLD citations that list the OLD domain URL?

Option B: NOT use OLD domain as a 301 redirect pointing to NEW domain - If we choose NOT to issue a 301 redirect with our OLD domain, and our online citations, links (content and directory links) remain the same with the OLD domain, will this completely affect and hurt our NEW domain's citations online and overall rankings? The business name and phone number, as well as address, will not be changing. Also, does Google not like having hundreds links sitting and not being redirected to the new domain, even if many of the links have been submitted to Google disavow?

Is Option A or Option B the best method when switching primary domains, in order to recover from long-term dropped rankings?