Home Assistant (Configure) not connecting to ESP8266-NodeMCUV2?

Very NEW at Home Assistant and how it works. I have been reading posts and documentation, but I am stuck on this one.
Hardware

  • HA is installed on a Raspberry Pi4 Mod B (4Gb) (with assigned Static IP)
  • Wired to network
  • NodeMCUv2 - ESP8266v2 (with assigned Static IP)

I am using the Pi’s USB port to configure the NodeMCU. I configured the NodeMCU with no problems after a few dumb starts. While connected to the Pi’s USB port the NodeMCU and DS18B20 were found and ESPHome started logging the temperatures. I looked at my router and verified the Static IP address that was assigned to the NodeMCU was active. I tried to ping the NodeMCU’s IP address, but it is unreachable. Home Assistant’s IP address was active and responded to the Ping. Did I miss something to install in HA? In the NodeMCU configuration? The yaml is located at the bottom of this post.
Thank you in advance for any assistance

Here is the install process:

NodeMCU - Loading 2

INFO Reading configuration /config/esphome/temperatures-4.yaml...
INFO Configuration is valid!
------------------------------------
esphome:
  name: temperatures-4
  platform: ESP8266
  board: nodemcuv2

# Enable logging
logger:

# Enable Home Assistant API
api:

ota:
  password: "47787fec......8695dad"

wifi: 
  ssid: "IoT"
  password: "lkglkj....293475aj"
  
  manual_ip:
    static_ip: 192.168.40.21
    gateway: 192.168.1.1
    subnet: 255.255.255.0 
 
   # Enable fallback hotspot (captive portal) in case wifi connection fails
  ap:
    ssid: "Temperatures-4 Hotspot"
    password: "WXg....4W88"

captive_portal:

dallas:
  pin: D4
  
# Individual sensors
sensor:
  - platform: dallas
    address: 0x2302049245F1DE28
    name: "Office Temperature"

Remove your IP settings and let your DHCP to pick an IP.
That will solve your problem.