Hey,
You should have storage available to all nodes of the cluster in order to migrate VMs between the nodes. 2016 node should have storage, so you can migrate VMs to it, before upgrading 2 2012R2 nodes. The following article covers the Cluster Rolling Upgrade: https://learn.microsoft.com/en-us/windows-server/failover-clustering/cluster-operating-system-rolling-upgrade
In addition, might be helpful: https://www.starwindsoftware.com/blog/cluster-rolling-upgrade-from-windows-server-2012-r2-to-windows-server-2016
Cheers,
Alex Bykovskyi
StarWind Software
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