iOS 10 requires the 6th generation iPod touch.I recently bought a 5th gen iPod Touch second hand. It works great and is in perfect condition other than it will not update. The thing has 9.3.5. When I connect to iTunes it indicated as up to date.
Model # MD717C/A
Like other people have mentioned, iOS 10 only available for the 6th generation iPod touch. You cannot upgrade past 9.3.5 due to the 5th generation's outdated specifications and hardware limitations.A have the same problem.