at the .set mips16 line, press Alt-G, choose mips16 and set the value to 0.
Press Ctrl-G to display the list of segment register changepoints, pick the mips16 list and delete the wrong entries with value of 1.
Note: it's best that there are no existing instructions at the addresses where you change the mips16 pseudoregister value, so it is ...
For Modern Binary Exploitation
For Kernel Exploitation