It says v3.8 since that was the version when you created the character and I assume you have continued to use the same file while updating. For the blacksmith if you have retrieved him from the sewer, make sure that you take care of the fake blacksmith out in the field past the bridge. If you have saved the blacksmith from the sewer, and talked to the real blacksmith, and took care of the fake blacksmith than I am not sure, could be bugged out.