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I have no idea what "RDNA 3.5" truly is, as neither secondary sources or AMD have released details on what it actually is.
I found this one source from Feb which touches on just LLVM changes: [1].
Heck, apparently it was going to be called "RDNA 3+", according to this old source from March: [2].
If I were to guess, it's not a direct successor to RDNA 3, rather, just some mid-step architecture specifically used in iGPUs and a small number of other applications (PS5 Pro?). Think of it like Zen 3+, where AMD made a more efficient refresh of Zen 3 but it was only used in mobile processors, nothing else. Other Zen 3 products still got directly replaced with Zen 4 based ones. That's just my guess though.