Just update it through your wallet, there is a button to update it, otherwise, just download the proper version (the latest one) from the official page of Electrum, it is not difficult to do so.
What's the proper way to update? If I download and install the new version, is there any chance of losing my wallet files? Will the 3.0.4 version be able to read my wallet files, or will I need to import my seed?
What do you mean by "your notes"? You are not going to lose anything, and if you import through your seed, you are going to recover your whole balance at the moment, it is just like importing a private key.
I assume I'll lose all of my notes if I import from seed, right? That's sort of a bummer. I was using it to keep records of the transactions, but now I'm afraid to open my wallet.
Guys, do not use electrum anymore, if this happened before, it can really happen one more time.