IOS-XE Denali represents Cisco’s effort to bring a single code base across their enterprise line of networking equipment, meaning the same operating system will run Catalyst, ISR, and ASR platforms.
IOS-XE 3.7 will be the “end of the track” for the 3.X train of code on Catalyst 3650/3850… so to speak.
Below are the steps I used to upgrade a 3850 from IOS-XE 03.06.03E to IOS-XE 16.3.5b Denali. The switches were in “install mode” and these steps are specific for that method. To check your mode you can issue a show version command and look under the Mode column. 3850s should come from the factory in install mode; bundle mode is similar to the older upgrade method where you boot from a monolithic bin file. More info on install mode and bundle mode can be found here.