Once the 16e is updated, you would erase the 16e and start over with a new setup. The erase will not revert the iOS, it will stay at 26.2.1
Settings > General > Transfer or Reset iPhone > Erase All Content and Settings
When you erase, you will have the option to keep existing eSIM or delete. Choose the option to keep the eSIM so you won't have to contact the carrier to start all over from scratch.
When you start the new setup of the 16e again, you will have the option to use the backup of the 13 mini to restore data back to the phone. That will take some time 45-60 minutes or so....depends on how much data will be transferred.