[Stig Jarlevik]

Peter

First of all I would say the unit was Blindflugschule (IFR training) 38

Secondly there is a small badge shown in Barry Ketley's Luftwaffe Emblems 1939-45

From what I can determine it shows no blue background outside the shield, the griffon is all red
and slightly more elaborate.
Instead of B38 it just have the digit 8 and the two yellow stripes are much darker yellow than
yours.
The reason for the digit 8 is that initially the unit was known as BFS 8 but changed its designation
to B 38 on 15 Oct 1943. Presumably the shield was thus changed from 8 to 38.
If the letter B was inserted, I don't know

Cheers
Stig