>> LB don't allow sending to Electrum
It's not Electrum - LocalBitcoins have no way of identifying which wallet generated a specific address - but rather they do not support segwit addresses. (I had no idea there were
still services out there which do not support segwit addresses. This is ridiculous, and another reason people should avoid LBCs.)
>> HOWEVER after the CB deposit, there is a withdrawal of the same amount appearing in my Electrum history
Either your Electrum is malicious, your computer has malware, or your seed phrase is compromised. (Or, less likely, you have duplicated your wallet via your seed phrase to another device and that has been compromised.)
It's definitely not a fake version. I updated, installed, uninstalled.
Did you every verify the download? If not, it could be malicious. I would suggest that you verify the installer you have downloaded now to see if that is the culprit.
Is your wallet duplicated to anywhere else? How do you store your seed phrase?
I downloaded it years ago from electrum.org (aware of possible phishing), and updated it every time I needed to. I reinstalled it now. Unfortunately I stored my seed in .txt file, because I was fucking dumb, and that's probably my issue. I'm gonna create a new wallet with Electrum, give it a much better password, store the seed on one of ye old pen & paper devices, like a notebook. I have no idea if my wallet is duplicated. I don't have it on any other device. Sorry for being a bit of a noob.
I HAVE left it open for extended periods of time though, including during this incident. Do you think it might have something to do with changing the "Expires by" from 1 hour to 1 week. I don't know why I did that, let's call it fucking dumb moment nr 2. That was the only change I made.
CB is trash, LBC sucks as well but it's faster. Got any other suggestions on what to use that allows sending to sedwig addresses and is also nice and easy and fast and streamlined? Maybe I'm asking for unicorns here but it's worth a try.