For full auto M16 lower, you need a $200 tax stamp, and form 4. You can use any length barrel. It no longer falls under the rules for title1. (ie "regular" guns) Its not a rifle any longer, its a machine gun. Think of them as two different things. If you want to use a suppressor on a machine gun, you have to buy the suppressor by either making it yourself (form1) or buy having it transferred to you from a dealer with a form4. Either method requires the $200 stamp. Same procedure as getting a machine gun. Form3s are used for interstate dealer to dealer transfers.
Now you've paid for a stamp and approved form 4 for the machine gun, and again for a suppressor. You can use whatever length barrel you want with or without the suppressor. Period. The world is your oyster at this point.
The stuff about 16" barrels is in regards to short barrel rifles. If the permanent fixed length of your barrel is less that 16" its considered a short barrel rifle. This is for a standard title 1 semi auto rifle. If you have a 14.5" M4 barrel, you need to permanently attach a flash suppresor, brake, suppressor mount, or fake suppressor to make it 16" long or longer. Now if you want to make a semi auto commando or M4 and not have a device permanently attached because you want to thread a can or change muzzle devices it has to be registered as a short barrel rifle. If you make it yourself, (and with ARs I imagine thats 95% of the time) you have to do a form1 and pay the $200 stamp. You have to have approval before you build the gun, or buy the parts. Once you've built an SBR you can use pretty much any length barrel you want and not have to permanently attach anything.
Now with a suppressor and a NON machine gun, you can use a suppressor no problem. You just have to observe the rules pretaining to barrel length. Thats it. If you want a M4 14.5" you need to have a quick detach mount permanently attached to make the barrel 16" minimum. If you've registered your gun as a SBR, your in the same position as the MG in regards to barrel length. Just say less than 16" and you can use a real threaded M4 barrel or a commando, whatever. And you can use the can on any of these.
All that make sense? I'm sure you knew most of it, but hopefully that lays it out. Legal MG = any length barrel you want + any suppressor you want. Legal semi SBR = any length barrel you want + any suppressor you want to get. Regular off the shelf semi auto = MUST have perm 16" length barrel which can be 16"+ device or shorter than >16" + some permanent muzzle device to make 16" + any suppressor you want. I think you were getting the semi rules and MG rules (or lack there of) confused. Hope this tortured explanation helps.