Here's the beginnings of a numeric approach. Will need to confirm singular points, and convergence speed along the contour.
Firse consider the inverse transform contour integral:
$$
\displaystyle \mathscr{L}^{-1}\{F(s)\}(t)=\frac{1}{2 \pi i }\lim_{\beta \to\infty}\mathop{\int}_{\gamma-i\beta}^{\gamma+i\beta} e^{st} \frac{\tan ^{-1}\left(\frac{\sqrt{2}}{\sqrt{s}}\right)}{\sqrt{2} \sqrt{s} \left(1-\frac{1}{4} b \left(2-\sqrt{2} \sqrt{s} \tan
^{-1}\left(\frac{\sqrt{2}}{\sqrt{s}}\right)\right)\right)} d\beta
$$
with $s=\gamma+i\beta$ and $\gamma$ greater than the real part of all singularities of the integrand. So that as far as I can tell, the only singularity is the origin but need to investigate this more to make sure the path is correct. So let $\gamma=1$.
After testing a few terms in detail, the convergence appears to be quick along the path. So I'll just integrate it from $\beta=-100$ to $\beta=100$ but will need to more study this.
Edit: forgot the i from the differential ds in initial post. Note this cancels the i in coefficient of integral. Updated below
Edit2: Made a mistake with the integrand. Update 2 below. Updated below
Edit3: Third mistake with integrand. Corrected below
The following code is a comparison for the case of $b=0$ of the real numeric results to the analytic results given by David above as:
$$
\text{bZero(t)}=\frac{\sqrt{\pi/2}\text{Erf}(\sqrt{2} \sqrt{t})}{2 \sqrt{t}}
$$
f[s_?NumericQ, b_?NumericQ] =
ArcTan[Sqrt[2]/
Sqrt[s]]/(Sqrt[2] Sqrt[
s] (1 - 1/4 b (2 - Sqrt[2] Sqrt[s] ArcTan[Sqrt[2]/Sqrt[s]])));
bZeroF[t_] := (Sqrt[Pi/2] Erf[Sqrt[2] Sqrt[t]])/(2 Sqrt[t]);
lTable2D = Table[
{theT,
1/(2 Pi )
NIntegrate[f[s, 0] Exp[s theT] /. s -> 1 + I t, {t, -200, 200}]},
{theT, 0.1, 5, 0.1}
];
realData = {#[[1]], Re@#[[2]]} & /@ lTable2D;
lp1 = ListPlot[realData, Joined -> True, PlotStyle -> Red,
PlotLegends -> Placed[{"Numeric"}, {0.9, 0.9}]];
lp2 = Plot[Re@bZeroF[t], {t, 0, 5}, PlotStyle -> Blue,
PlotLegends -> Placed[{"Analytic"}, {0.9, 0.7}]];
Show[{lp1, lp2}]

InverseLaplaceTransform
doesn't work out of the box $\endgroup$InverseLaplaceTransform
(without the unneeded Block, Assumptions, etc.). $\endgroup$InverseLaplaceTransform[ArcTan[Sqrt[2]/Sqrt[s]]/(Sqrt[2] Sqrt[s]), s, t]
, submitted to support $\endgroup$