I would steer clear of 1996 OBDII the first year for OBDII a lot was changed after the first year
That is probably true for most cars.
I completely disagree when we're specifically talking about Jeep Cherokees and Grand Cherokees. That is the best year to get. I generally only buy 1996 Jeep Cherokees and some early 1997 ones before the midyear changes. After mid year 1998 I avoid those engines like the plague.
It is true that parts started changing in 1997, which makes 1996 different than later OBD2. What is pretty great, however, is that the parts from the years prior are still compatible with 1996. The dash is the same, the AW4 transmission is backwards compatible, and the 4.0 itself is backwards compatible to earlier years. Since transmissions and engines from the 1990 to 1995 OBD1 era are more plentiful and consistant, I rely on that supply of used parts.
In later years they added a second catalytic converter into the header that makes it much harder to work with. They changed the bolt pattern at the same time so you can't use older heads with the new manifolds. The new heads are prone to cracking, and many of the newer engines are bad and unavailable. They added a second sensor and changed the inputs to make older AW4s unable to work in the newer Jeeps, even though the newer AW4s can still be made to work in an older Jeep.