Can you answer these questions below
- How did you upgrade it to 3.3.8?
- Where did you download this version?
- Have you tried to verify the signature first of this version?
- Do you have a backup seed phrase?
If you download it from the original website which is electrum.org and verified the signature your wallet is safe but if you are using a fake Electrum 3.3.8 your wallet is at risk.
Did you remember the bitcoin address you have from your wallet(Where your BTC is saved)? Can you share it here so that we can check if your Bitcoin still there?
I've opened the wallet file, and can see a string of text under the seed: section. The wallet file also says it is encrypted, even though it is not, as I can read the file. If I set the encryption to false, electrum shows me the long string which is hashed I'm sure, and attempts to change the password with failure of course.
That's a weird part it seems that your wallet file is corrupted?
What OS you currently using?