Two things to clarify,
1. It's that your MSM320 AP having different firmware version from the controller? If yes, the AP will try to download new firmware and perform the reboot cycle.
2. If you set the both radio to MESH, then for sure that there is no SSID will be broadcasting out from the AP because both the radio in MESH mode. You can try to select "mesh and AP" mode together.
To perform the dynamic meshing in MSM some simple step here you can follow,
1. Under the AP (AP1) connect directly to the controller, create the local mesh profile.
2. For that AP1, under the configure local mesh profile, uncheck inherited, select enable, insert others necessary setting like mode and mesh ID.
3. On the other hand, provision the AP (AP2) that will be connecting using mesh.
4. Enter the provision mode and insert necessary mesh info just set in step 2.
5. Reset the AP2 after done the configuration.
6. AP will be discover thru meshing and place in default AP group in left pane. This AP will turn red and not function after discover by controller. (because AP2 try to getting configuration from default group which overwrite it own config)
7. You need to create a new AP group with mesh setting same with step 4. Drag the AP2 in the group. The AP2 will be restarting automatically.
8. The AP2 will be becoming green again. Check the mesh status.
Hope this will be helping you.