I think you need to try this: You need to bring all switches in the stack on the same mode, either install or bundle mode.To change from Bundle to install following command you can try.  #request platform software package install switch all file flas...

You can install the IOS directly from the USB, and following command is working. It is applicable for all Cisco Catalyst 9500 Switch#install add file usbflash0:cat9k_iosxe.16.09.04.SPA.bin activate commit then save the config Switch#wr methen reload ...