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Everything I'm reading says that if you tried to flash a 4MB image onto a 1MB ESP, that you'd receive this error. In this thread the user was encountering the error and it turned out what they thought was a 16MB ESP was actually a 4MB and it refused to flash it. So I'm questioning your claim that you successfully flashed a 4MB firmware onto a 1MB ESP.
In this thread they're trying to flash 1MB firmware but the tool appears to be compiling to 4MB and refusing to flash. I think this is the issue you're having, I would suggest you update ESPHome to the latest version and try Cleaning your build files. This thread also reinforces my feeling that you didn't actually flash a 4MB firmware onto a 1MB ESP, because that's failing to happen here.