The verse right after that specifically mentions the plagues of Egypt. I don't recall "having your entire body morphology and genetic structure altered into that of a Neanderthal" to be one of them.
Furthermore, Neanderthals were not diseased but actually just as healthy as any other creature of the time. Neanderthals also didn't have cities, so they could not be "cursed in the city" as Deuteronomy 28:16 states. Neither did they farm or raise sheep (Deuteronomy 28:18). They hardly "perished quickly" either (Deuteronomy 28:20). In fact, they survived for several times longer than modern humans have existed.
Also, they died out before swords were invented, so Deuteronomy 28:22 can't be talking about them. Show me a Neanderthal fossil with sword wounds if you don't believe me.
They weren't mad and blind either (Deuteronomy 28:28), or at least not in any greater incidence than the populations of other species.
Also, they actually did build houses out of mammoth bones, and they were inhabited, contrary to what you would like Deuteronomy 28:30. They didn't plant vineyards either.
Deuteronomy 28:38 - 39 again refers to agriculture, something the Neanderthals didn't do.
Deuteronomy 28:40 says "Thou shalt have olive trees throughout all thy coasts", yet Neanderthal fossils have been found in places where olive trees are not native.
They also weren't ruled by other people, they had their own small communities.
There were no nations that warred against them (Deuteronomy 28:49) because nations had yet to exist.
Neanderthals most certainly didn't build gates, or high and fenced walls (show me archaeological ruins of a Neanderthal city under siege by the kind of armies talked about in Deuteronomy)
Neanderthal women were also not "delicate and tender" (they were bulkier and stronger than modern men) and they were actually some of the major hunter-gatherers, far from "would not adventure to set the sole of her foot upon the ground for delicateness and tenderness".
They also didn't have ships, and no one ever carried them on ships (Deuteronomy 28:68). They were extinct before ships were invented. Or before there was civilization in Egypt, for that matter.
Psalm 38 was written by David, who was certainly not a Neanderthal.
Interpreting these passages as referring to Neanderthals or other previous hominids is clearly nonsensical.