diff --git a/.gitattributes b/.gitattributes
index 9b03811..8eaa287 100644
--- a/.gitattributes
+++ b/.gitattributes
@@ -21,3 +21,5 @@
 *.xz filter=lfs diff=lfs merge=lfs -text
 *.zip filter=lfs diff=lfs merge=lfs -text
 *.zst filter=lfs diff=lfs merge=lfs -text
+*.tar.bz2 filter=lfs diff=lfs merge=lfs -text
+*.tar.?z filter=lfs diff=lfs merge=lfs -text
diff --git a/_service b/_service
index 353596e..6ff85df 100644
--- a/_service
+++ b/_service
@@ -3,7 +3,7 @@
     <param name="url">https://github.com/arighi/virtme-ng.git</param>
     <param name="scm">git</param>
     <param name="submodules">enable</param>
-    <param name="revision">v1.37</param>
+    <param name="revision">v1.38</param>
 	<param name="versionformat">@PARENT_TAG@</param>
     <param name="versionrewrite-pattern">v(.*)</param>
     <param name="versionrewrite-replacement">\1</param>
diff --git a/virtme-ng-1.37.tar.xz b/virtme-ng-1.37.tar.xz
deleted file mode 100644
index be2720e..0000000
--- a/virtme-ng-1.37.tar.xz
+++ /dev/null
@@ -1,3 +0,0 @@
-version https://git-lfs.github.com/spec/v1
-oid sha256:27061952d654afa212e57135add90555afd92af048ba0a5f62dcd8da855d47cf
-size 80752
diff --git a/virtme-ng-1.38.tar.xz b/virtme-ng-1.38.tar.xz
new file mode 100644
index 0000000..650eaa0
--- /dev/null
+++ b/virtme-ng-1.38.tar.xz
@@ -0,0 +1,3 @@
+version https://git-lfs.github.com/spec/v1
+oid sha256:4560b61732e2e3fd3f4885cd29bcd33eb10b3d245da80fceaecb512cefa378ab
+size 81884
diff --git a/virtme.changes b/virtme.changes
index fd236bd..6875aa4 100644
--- a/virtme.changes
+++ b/virtme.changes
@@ -1,3 +1,13 @@
+-------------------------------------------------------------------
+Mon Sep 29 05:51:22 UTC 2025 - Michael Vetter <mvetter@suse.com>
+
+- Update to 1.38:
+  * Fix the infamous Stale file handle (ESTALE) errors with virtiofsd
+  * Fix for systemctl daemon-reload when systemd support is enabled
+  * Fix for a kernel symlink issue affecting openSUSE/SLE
+  * README/docs improvements
+  * Various coding style cleanups
+
 -------------------------------------------------------------------
 Mon Aug 11 06:27:20 UTC 2025 - Michael Vetter <mvetter@suse.com>
 
diff --git a/virtme.spec b/virtme.spec
index dfd196e..54549d7 100644
--- a/virtme.spec
+++ b/virtme.spec
@@ -22,7 +22,7 @@
 %global pythons python311
 %endif
 Name:           virtme
-Version:        1.37
+Version:        1.38
 Release:        0
 Summary:        Tools for virtualize the running distro or a rootfs
 License:        GPL-2.0-only