The size of your tank means it should have a number WM6 on the tag. This means you should be getting almost 6 gallons of drawdown. Your tank is probably no longer charged to 38 PSI with air. Because your pump starts at 38 PSI, you should only have 36 PSI of air in the tank. However, if you have 36 or 38 PSI air in the tank, the bladder should hit the bottom at that point and you should get no more water out below 36 PSI.. When letting water out with the pump off, the pressure should drop slowly from 58 to 38 as about 5 or 6 gallons comes out. Then the gauge should drop from 36 to 0 almost instantly, as the bladder bottoms out at 36.
Either your tank is out of air, the bladder is busted, or both. You have to air it up to 36 PSI while the pump is off and the faucet is open. If air keeps coming out of the faucet and the tank won't stay charged, then the bladder is busted. The tank could also take an air charge but weigh 160 pounds if the bladder is busted and is stopping up the discharge hole. That tank should only weigh about 10 pounds when empty.
What busted the bladder was too much cycling on and off because that is a very small tank. It is the perfect size to use with a Cycle Stop Valve but, without a CSV your pump could have been cycling a lot with the small tank.
Sorry I missed your email earlier. Hope this answers your question.