petty theft charge

First of all, I do not know the totality of the circumstances surrounding your case. In order to fully answer your question, I would need to sit down with you and discuss the situation at length. Because things can vary depending on the circumstances, I highly recommend you meet with a lawyer so you can get complete advice on the best way for you to proceed.

Now, to answer your question. Generally a dismissal is better than pleading to a charge. Based on what you have stated in your question, it sounds like the prosecutor is willing to allow you to participate in a theft offense diversion program. While you participate in the program, the case is held open with no action against you. Once you have completed the program, the prosecutor will completely dismiss the case against you. Once the case is dismissed, you can apply to get it sealed right away so it won't show up on searches.

If you plead guilty to the misuse charge, you can only seal the conviction if it is your first offense.

As I said, it is generally better to get a charge completely dismissed rather than pleading to a lesser. With a dismissal, it is much easier to get the record sealed than if you pled to a charge. For your specific situation though, you should talk to a lawyer to make sure you are eligible for the conviction or dismissal to be expunged and to verify which would be better for you.

If you have any additional questions or would like to discuss your situation in more detail, feel free to contact me.