Excluding a Category and Older Posts conflict

So on my main page https://www.muzeclothing.com/blog I am excluding the category 38, as I have a seperate page that shows all category 38 and sub categories within it. I have messed with a couple different ways of coding it within index.php and it keeps not working in a different way each time.

For example, when I code like this:

<?php
   if (is_home()) {
      query_posts("cat=-38");
   }
?>

That gives me a problem where anytime I click on any category, it just links me back to the main page instead of showing all posts within that given category (it does that with any category or sub category I click)

The other coding that works fine with all categories and listing them correctly is :

<?php $paged = (get_query_var('paged')) ? get_query_var('paged') : 1;
      query_posts("cat=-38 &amp;paged=$paged"); ?>

Now, when I do that one, it gives me everything I want, EXCEPT when I click on Older Posts, it pops up with the html https://www.muzeclothing.com/blog/page/2/ and the page that it shows is still the front blog page… so nothing I change will send me to the second page of blog posts.

Anyone able to help me on this?