I've had the exact opposite experience. I've been using 3.8 for my daily driver since last week, and I've gradually been giving it more and more complex tasks as it continues to deliver high quality results. Now I am basically handing off large complex features, and 3.8 is doing the planning, task breakdown, implementation and review with just a few notes from my side.
The tradeoff is time (especially on RDMA4 hardware) - it does take a long time and spend a lot of tokens to get to the result, but I've found I can trust the results enough that I can queue a lot of work, essentially have it running all the time and achieve a decent velocity.
It's the first small local model I've felt like I can do real work with.