Let $\Omega \subseteq \mathbb{R}^n$ be open, bounded with smooth boundary. Does $u \in H^1(\Omega)$ imply that $(1+u^2)^{\frac{1}{2}}\in H^1(\Omega)$?
If yes, I would expect a more general result holds about composing $H^1(\Omega)$ with $C^1$ sufficiently slowly increasing functions with sufficiently slowly increasing derivatives. I am not really sure about how one goes about proving this kind of result.