Hello!
Sorry for the late reply!
Indeed, as you have figured out, mozzi does not support 16bits oscillators. There have been of work done in that direction but it is not as simple as it seems and rarely actually useful on MCU.
Smoothing a scaled up value is the way to go if you want to increase the resolution. I would probably try first with a LowPassFilter (or LowPassFilter16 depending on your MCU and code). Depending on the extreme values of the LFO, you might need to change the cutoff frequency of the lpf on the fly.
Do not hesitate to provide a snipset of code if you want more accurate suggestions!
Best,