This simply marketing drivel amongst the civilian manufacturers. And not consistent across the market.
Regarding the M16 (emphasis on the upper):
XM16/M16 (produced in quantity only for USAF over 40 years ago) are the only models lacking Forward Assist. Simple flip rear sight (incorrectly called an A1 rear sight) adjustable for windage only. SAFE-SEMI-AUTO. Colt's SP1 models mimic this very well.
XM16E1/M16[b]A1[/b] added Forward Assist among other enhancements. Forward Assist is the [i]defining[/i] item for an A1. SAFE-SEMI-AUTO. Fixed handle.
M16[b]A2[/b] added the brass deflector bump and Camp Perry rear sights. SAFE-SEMI-BURST. Fixed handle.
C7 made for Canadian (and Danish) Forces is a mix of the M16 handle and sights with the brass deflector of the M16A2. Marketed as a A1 type by many, but it's not. Fixed handle.
M16[b]A3[/b] is a M16A2 with SAFE-SEMI-AUTO. Fixed handle, of course. No differences in the uppers.
M16[b]A4[/b] is a M16A2 with a detachable handle. SAFE-SEMI-BURST. This receiver has a different part number from the similar flattop M4 receiver, but this [i]may[/b] be because the M4 is still a proprietary Colt's product.
The only adopted models of the carbine are the M4, SAFE-SEMI-BURST; and the M4A1. ...-Auto. All but the first few have detachable handles, there's no M4A2, M4A3 etc.
-- Chuck