Sometimes the system in a lever gun that feeds ammo is length of cartridge dependent. The difference between 38SPL and 357MAG is significant and unless someone has actually tried it in the gun of interest all bets are off.
The carrier (the device that lifts the cartridge from the cartridge feed tube level up to where the bolt can push the cartridge into the barrel) is so designed that the length of the cartridge positions the next round. If too short it allows the cartridge to move too rearward, blocking the path of the carrier. Some designs accommodate that but the classic original Winchester Model 1892's don't, I believe. Many of the 357 levers today are clones of that John Browning/Winchester design.
Having said all that the Henry web page indicates it will handle both 357MAG and 38SPL: