(EDIT: All clear! Kobo Start Menu 04 (with and without updates) runs without problems on FW 3.5.0. Please ignore the following warning
Since there is a new FW 3.5.0 I would like to call to mind that there is always a chance that new firmwares might cause problems in connection with the Kobo Start Menu. If you don't want to take the risk, don't install the new FW, or install the new FW by selecting "handle update" > "install update" (rather than install partial update). This will disable the Kobo Start Menu after the update is installed. Alternatively, you can also set the runmenu=alternateMenu in runsettings.txt. But "install update" is the safest way.
I cannot test the new FW myself right now, since I don't have my KT with me.