I'm willing to bet it's unstable. To prove stable equilibrium you need to prove it's stable in EVERY direction at the origin. To prove unstable you only need to prove it's unstable in one direction at the origin. That should be your goal.
Use symmetry considerations.
Also as someone said look at the field and see if it points back or away from the suggested equilibrium point.
I believe we have already covered the potential on the ##z-axis## and concluded that the field pointed back towards the origin so it's stable in that direction of displacement.
Consider instead the potential in the plane of the ring and inside the ring
I'll get started and maybe others can chime in
##V = \frac{1}{4 \pi \epsilon_0} \int \frac{\lambda}{\left|\vec{R} - \vec{r} \right|} \, dl' = \frac{\lambda R}{4 \pi \epsilon_0}\int \frac{1}{ \sqrt{R^2 + r^2 - 2 \vec{R} \cdot \vec{r}} } \, d \phi' ##
##\vec{R} = \left( R \cos \phi', R \sin \phi', 0\right)##
##\vec{r} = \left( r \cos \phi, r \sin \phi, 0\right)##
Make ##\phi = 0##, you can do this arbitrarily due to cylindrical symmetry
And you get
##V = \frac{\lambda R}{4 \pi \epsilon_0}\int \frac{1}{ \sqrt{R^2 + r^2 - 2Rr \cos \phi' }} \, d \phi ' ##Can you invoke a smallness parameter and get rid of that middle term?
Can you take a (negative) derivative with respect to ##r## (you can move this inside the integral) to find the field?
Can you then evaluate the integral and find out which direction the field points? (u-substitution)