We completed one project using ADRV9361-Z7035 with 2016.2 release.
What latest release is recommended for this HW.
Will I get any additional features if latest supported release is used.
The latest release 2019-R2 supports Vivado 2019.1.
Newer reference designs have integrated filters and bug fixes. The main reason to upgrade is for bug fixes and more modern tools. You will also have limited support on older releases as we do not generally backport fixes.