rule of thumb: never mess with tor's path selection unless you really know what you are doing.
If I receive a message saying this relay uses an outdated version does that mean that my traffic is any less secure?
potentially yes, but that does not mean you should not use it since not using it (i.e. by excluding all relays that are not recommended) would potentially be worse than using them regardless of their tor version
Does Tor take potentially insecure relay versions in to account when creating circuits?
No.