diff --git a/CHANGELOG.md b/CHANGELOG.md
index 80357188..dc3a6c13 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,10 @@
 # Changelog
 
+## [3.5.0] - 2025-09-10
+
+- Improved exercise submission packaging to avoid overly large archives
+- Improved extension data migration from one version to the next
+
 ## [3.4.2] - 2025-08-21
 
 - Fixed unnecessary dynamic library dependency causing errors when the library was missing on the user's computer.
diff --git a/config.js b/config.js
index 84f87dc7..a8f9f375 100644
--- a/config.js
+++ b/config.js
@@ -3,7 +3,7 @@
 
 const path = require("path");
 
-const TMC_LANGS_RUST_VERSION = "0.38.3";
+const TMC_LANGS_RUST_VERSION = "0.39.1";
 
 const mockTmcLocalMooc = {
     __TMC_BACKEND_URL__: JSON.stringify("http://localhost:4001"),
diff --git a/package-lock.json b/package-lock.json
index 91a48bcd..e5c8dac0 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
     "name": "test-my-code",
-    "version": "3.4.2",
+    "version": "3.5.0",
     "lockfileVersion": 3,
     "requires": true,
     "packages": {
         "": {
             "name": "test-my-code",
-            "version": "3.4.2",
+            "version": "3.5.0",
             "hasInstallScript": true,
             "license": "MIT",
             "dependencies": {
diff --git a/package.json b/package.json
index 8bb00cf4..14ffd76e 100644
--- a/package.json
+++ b/package.json
@@ -1,7 +1,7 @@
 {
     "name": "test-my-code",
     "displayName": "TestMyCode",
-    "version": "3.4.2",
+    "version": "3.5.0",
     "description": "TestMyCode extension for Visual Studio Code",
     "categories": [
         "Education",
diff --git a/webview-ui/src/panels/Welcome.svelte b/webview-ui/src/panels/Welcome.svelte
index 80b94862..558929df 100644
--- a/webview-ui/src/panels/Welcome.svelte
+++ b/webview-ui/src/panels/Welcome.svelte
@@ -72,6 +72,19 @@
         <!-- This list should generally contain only the last couple versions/months worth of updates -->
 
         <div class="content_section">
+            <h3>3.5.0 - 2025-09-10</h3>
+            <h4>Improved exercise submission packaging to avoid overly large archives</h4>
+            <p>
+                Previously, some unnecessary files were included when packaging exercise
+                submissions, sometimes leading to very large archives if a large file happened to be
+                in the exercise directory.
+            </p>
+            <h4>Improved extension data migration from one version to the next</h4>
+            <p>
+                The format of the extension data may change between extension releases, and in such
+                cases it's necessary to migrate data from the previous format to the new one. This
+                operation has been made more robust in preparation for a future update.
+            </p>
             <h3>3.4.2 - 2025-08-25</h3>
             <h4>Removed an unnecessary dependency which could cause errors</h4>
             <p>