Should I upgrade Sync 3 3.0.20204 to 3.4.22048?

Mostly speed improvements, no one can tell you if you should or shouldn’t upgrade, just be aware that it’s impossible to go back to 3.0 if you go to 3.2+

No, this requires 5GHz WiFi Direct functionality and SYNC 3 to support Wireless Android Auto which isn’t something it does, you need a AAWireless device or SYNC 4 for Wireless AA