Tire Sizing Confusion

This may sound like a lame question, but I am really confused about properly sizing a pair of replacement tires. I have a Bianchi hybrid that I suspect came with either the wrong sized tires or just really bad ones. When the tubes are deflated, the tires are so loose that I don't even need levers to remove them. They are Kenda Kwests and are labeled "40-622 (700 X 38C - 28 x 1 5/8 X 1 1/2)". I looked up info on the rims, which are Alex X-202, 36-hole. The best I can tell is that the rims are 26. I'm in Brooklyn and ride exclusively on the rode. Any recommendations for what sized replacement tires I should be looking at would be greatly appreciated.

Presuming the tires hold air when they are inflated, they are the right size ...

Tires with a WIRE BEAD are often (much) easier to remove than a tire with a KEVLAR BEAD ...

I presume the WTB TERRAINASAURUS is still available (700x30/32). It will be a good next-tire size for you to try on your current wheels because it will be lighter. It is a compromise tread which is suitable for crappy pavement & hard-pack gravel/dirt; so, that would be my recommendation.

I think the Alex rim has a 19mm bead-to-bead dimension, so your rim is a 622-19 (relatively wide compared with a normal "road" width of 622-15) ... and, you could use a 700x28 tire, also.

The WTB TERRAINASAURUS are smaller & lighter than your current tires. A 700x28 would be even smaller.

You will probably need to buy new, smaller tubes than your current tires use unless you get the same size tires as you currently have on your bike.

I have the Kenda Breakers in 40c on my commuter. They are now the Kwests and don't come in 40c.
I would suggest the Kwick Roller EZ Ride in 40c w/ Iron Cap
Kenda Kwick Roller Ez Ride Tire
Good tough tire with lots of protection for Brooklyn streets. (I used to work in NYC and the 5 Burroughs)

My wife has the same tires, and I've noticed the same looseness when fixing a flat. Never had a problem with them, though