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You are correct - I meant a V4, but my finger slipped. I believe the V4 did show up at the end of the model year, alongside the two-stroke.
The V4 had the same HP as the high-performance 850 two-stroke, but an additional 10 ft-lb of torque.
I've not driven them side by side, but I would take a stock Monte Carlo 850 96 over a V4 96. The lighter weight of the two-stroke more than makes up for the loss in torque, and the handling is better. However, if you're talking about the more common 96 sedan or 95 wagon with the 750 cc two-stroke mill, then yes, the V4 was a considerable upgrade in performance and driveablity.
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