Yes, upgrade to 1.9.8. Also, double and triple check spelling when you write your seed down.
But also remember: (Because there is always possibility of malware on your computer that may alter things.)
Be familiar with your wallet. Know how many bitcoins are in it. Know about how many times you've used it. Know what kind of labels you have on it.
If a piece of malware replaced default_wallet with a watch-only wallet to an attacker's electrum wallet, would you be safe? Would you recognize that it isn't your wallet?
The bug in 1.9.7 is a bad bug, I understand, and I don't want to blame victims. BUT I think that people need to be diligent when dealing with money on their computer.
Especially on a computer that has touched the internet, double check everything, always.
Anyone who hits the wallet restore bug has about 3-5 huge red flags they should notice... restoring from seed should NEVER create a watch-only wallet, being one of them.