diff --git a/CHANGELOG.md b/CHANGELOG.md
index 43e41618..020ed307 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,9 @@
 # Changelog
 
+## [3.4.1] - 2025-08-21
+
+- Fixed Python exercises including venv directories when packaging.
+
 ## [3.4.0] - 2025-07-17
 
 - Improved error handling during initialization.
diff --git a/config.js b/config.js
index 48ffdae7..1278d5d4 100644
--- a/config.js
+++ b/config.js
@@ -3,7 +3,7 @@
 
 const path = require("path");
 
-const TMC_LANGS_RUST_VERSION = "0.38.0";
+const TMC_LANGS_RUST_VERSION = "0.38.1";
 
 const mockTmcLocalMooc = {
     __TMC_BACKEND_URL__: JSON.stringify("http://localhost:4001"),
diff --git a/package-lock.json b/package-lock.json
index 49c71f05..f0aafd06 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
     "name": "test-my-code",
-    "version": "3.4.0",
+    "version": "3.4.1",
     "lockfileVersion": 3,
     "requires": true,
     "packages": {
         "": {
             "name": "test-my-code",
-            "version": "3.4.0",
+            "version": "3.4.1",
             "hasInstallScript": true,
             "license": "MIT",
             "dependencies": {
diff --git a/package.json b/package.json
index 656de4e8..ee7e64dc 100644
--- a/package.json
+++ b/package.json
@@ -1,7 +1,7 @@
 {
     "name": "test-my-code",
     "displayName": "TestMyCode",
-    "version": "3.4.0",
+    "version": "3.4.1",
     "description": "TestMyCode extension for Visual Studio Code",
     "categories": [
         "Education",
diff --git a/shared/langsSchema.ts b/shared/langsSchema.ts
index 9ab1a509..2c6b3285 100644
--- a/shared/langsSchema.ts
+++ b/shared/langsSchema.ts
@@ -1,5 +1,5 @@
-// VERSION=0.38.0
-// https://raw.githubusercontent.com/rage/tmc-langs-rust/0.38.0/crates/tmc-langs-cli/bindings.d.ts
+// VERSION=0.38.1
+// https://raw.githubusercontent.com/rage/tmc-langs-rust/0.38.1/crates/tmc-langs-cli/bindings.d.ts
 
 export type Locale = string;
 
diff --git a/webview-ui/src/panels/Welcome.svelte b/webview-ui/src/panels/Welcome.svelte
index 13f754d4..47fa4294 100644
--- a/webview-ui/src/panels/Welcome.svelte
+++ b/webview-ui/src/panels/Welcome.svelte
@@ -72,6 +72,13 @@
         <!-- This list should generally contain only the last couple versions/months worth of updates -->
 
         <div class="content_section">
+            <h3>3.4.1 - 2025-08-21</h3>
+            <h4>Fixed Python exercises including venv directories when packaging</h4>
+            <p>
+                Previously, if an exercise contained a venv directory it would get included during
+                submissions and cause issues at the server. Now these directories are ignored during
+                packaging.
+            </p>
             <h3>3.4.0 - 2025-07-17</h3>
             <h4>Improved error handling during initialization</h4>
             <p>