A 20mm travel bump from 34 to 38 is a more significant change than it might seem on paper, because the axle-to-crown increase on a fork is never the same as the travel increase. A 180mm Fox 38 will typically add somewhere in the region of 10-15mm to your axle-to-crown versus your 160mm Fox 34, which slackens your head angle and raises your front end noticeably. On a Gen 1/2 Levo, which wasn't designed with that geometry in mind, you'll likely feel the bike sitting nose-up and slightly unwilling to turn compared to stock.
There's also the steerer and crown compatibility question worth checking first. The Gen 1/2 Levo uses a tapered steerer (1.125" top / 1.5" bottom), and your new 38 will need to match that. The Fox 38 factory fork is compatible with the 1.5 steerer, but double check your specific build has the right steerer diameter before it goes anywhere near your frame.
The handling shift will probably be noticeable rather than disastrous. Whether you'll like it depends on what you're riding. Some riders find the slackened head angle an improvement on steeper terrain, others find the raised front end kills the snap in tight corners. Worth trying it as-is before reaching for a headset cup to correct things.