Hello there,
JUNOS upgrade is officially supported across 3 or less major versions at a time.
Therefore to go from 8.5 to 9.6 you formally need to upgrade first to 9.2 maximum , then to 9.5 and then to 9.6.
But if you could afford factory-defaulting this box , I would say do not worry, go straight to 9.6 and use "no-validate" knob.
The worst thing you could experience is that the box becomes "Amnesiac" and you have to configure it from scratch - which is not very different from factory-default config.
That being said, I assume you upgrade from JUNOS-ES 8.5 to JUNOS-ES 9.6. The latest Legacy-Services-JUNOS for J-series is 9.3R4.
And VPLS is supported on J-series platform with JUNOS 9.6 with restrictions, please have a look here
http://www.juniper.net/techpubs/software/junos-security/junos-security96/junos-security-swconfig-interfaces-and-routing/vpls-exceptions-jseries-section.html#vpls-exceptions-jseries-section
Good luck!
Rgds
Alex