The 3850 must have IP Base or IP Services to terminate Access Points in a Converged Access wireless network. If you are running a non-converged access network then you can use your 3850 to connect access points to the network like you would any other switch.
You must also have RTU licenses for each AP you want to connect to your 3850/3650 switches.
7.6.120 is non-converged access code so I am assuming you want to do the latter.
No I want to be converged using the 5508 as mobility master, we plan on un stacking 1 3850 and going ip base on it add licenses to the wlc and go with the 3702 AP's. So I am looking for stable code to run them and the exsisting 3602's we already have in place now. We ordered up the modules to go 11ac with the 3600's too.
The AP licenses will still need to be added to the 3850 switches, not the 5508.
With converged access i would go with the most current code. There are sure to be many bug fixes and feature updates in each iteration of the code.