1. is it a good candidate for parameter sniffing?

2. how could I add option(recompile) within the code?

   ALTER PROCEDURE [dbo].[usp_upd_activity] @activityId INT, @title VARCHAR(100), @description VARCHAR(MAX), @inclusions VARCHAR(MAX), @locationId INT, @imageUriMain VARCHAR(255), @uploadToBucket VARCHAR(200), @path VARCHAR(200) AS BEGIN

    SET NOCOUNT ON;
   
    BEGIN TRAN 
    BEGIN TRY
   
        DECLARE @documentId INT
   
        IF NOT EXISTS (SELECT 1
                         FROM document 
                        WHERE activityId    = @activityId)
        BEGIN
            INSERT INTO  document 
                        (   [uploadToBucket], [path], [activityId])
            VALUES      (@uploadToBucket, @path, @activityId)
   
            SET @documentId = SCOPE_IDENTITY();
   
   
        END
        ELSE
        BEGIN
            UPDATE  document
            SET     uploadToBucket  = @uploadToBucket,
                    [path]          = @path,
                    activityId      = @activityId
            WHERE   activityId      = @activityId    
   
            SET @documentId = 
                (SELECT documentId 
                   FROM document 
                   WHERE activityId = @activityId)
        END
   
        UPDATE          activity
        SET             title           =       @title,
                        description     =       @description,
                        inclusions      =       @inclusions,
                        locationId      =       @locationId,
                        imageUriMain    =       IsNull(@imageUriMain, imageUriMain),
                        documentId      =       @documentId
        WHERE           activityId      =       @activityId                 
   
        COMMIT
   
   
    END TRY
    BEGIN CATCH
        DECLARE     @ErrorMessage   nvarchar(max), 
                    @ErrorSeverity  int, 
                    @ErrorState     int;
        SELECT      @ErrorMessage = ERROR_MESSAGE() + ' Line ' + 
                                    cast(ERROR_LINE() as nvarchar(5)), 
                                    @ErrorSeverity = ERROR_SEVERITY(), 
                                    @ErrorState = ERROR_STATE();
   
        IF @@TRANCOUNT > 0
            ROLLBACK;
   
        RAISERROR (@ErrorMessage, @ErrorSeverity, @ErrorState);
    END CATCH       
   

   END

1. is it a good candidate for parameter sniffing?

2. how could I add option(recompile) within the code?

There are differences between adding option(recompile) within the code and creating a stored procedure with recompile.

I would be more keen on the option(recompile) if that is possible.

ALTER PROCEDURE [dbo].[usp_upd_activity]
                    @activityId             INT,
                    @title                  VARCHAR(100), 
                    @description            VARCHAR(MAX),
                    @inclusions             VARCHAR(MAX),
                    @locationId             INT,
                    @imageUriMain           VARCHAR(255),
                    @uploadToBucket         VARCHAR(200),
                    @path                   VARCHAR(200)
AS
BEGIN

    SET NOCOUNT ON;
    
    BEGIN TRAN 
    BEGIN TRY

        DECLARE @documentId INT
        
        IF NOT EXISTS (SELECT 1
                         FROM document 
                        WHERE activityId    = @activityId)
        BEGIN
            INSERT INTO  document 
                        (   [uploadToBucket], [path], [activityId])
            VALUES      (@uploadToBucket, @path, @activityId)

            SET @documentId = SCOPE_IDENTITY();
            
             
        END
        ELSE
        BEGIN
            UPDATE  document
            SET     uploadToBucket  = @uploadToBucket,
                    [path]          = @path,
                    activityId      = @activityId
            WHERE   activityId      = @activityId    

            SET @documentId = 
                (SELECT documentId 
                   FROM document 
                   WHERE activityId = @activityId)
        END

        UPDATE          activity
        SET             title           =       @title,
                        description     =       @description,
                        inclusions      =       @inclusions,
                        locationId      =       @locationId,
                        imageUriMain    =       IsNull(@imageUriMain, imageUriMain),
                        documentId      =       @documentId
        WHERE           activityId      =       @activityId                 
             
        COMMIT


    END TRY
    BEGIN CATCH
        DECLARE     @ErrorMessage   nvarchar(max), 
                    @ErrorSeverity  int, 
                    @ErrorState     int;
        SELECT      @ErrorMessage = ERROR_MESSAGE() + ' Line ' + 
                                    cast(ERROR_LINE() as nvarchar(5)), 
                                    @ErrorSeverity = ERROR_SEVERITY(), 
                                    @ErrorState = ERROR_STATE();

        IF @@TRANCOUNT > 0
            ROLLBACK;

        RAISERROR (@ErrorMessage, @ErrorSeverity, @ErrorState);
    END CATCH       
       
    
END