I saved the jpg directly from the 16 bit psd file. Yes the banding IS visible and very much there. Setting the cache level to 1 improves the banding in 8 bit when using brushes (not gradients) but does nothing for the 16 bit using either. Also, I made new files for each to test again after changing the cache, so this isn't a matter of looking at old/pre-existing banding.
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