The update gives a cardinal $\bar\kappa$ that is $\alpha$-extendible for $\alpha$ much larger than many measurable cardinals above $\bar\kappa$.
Proof. Suppose that $\kappa$ has the stated reflection property. Consider some large ordinal $\theta$ and let $B=\langle V_{\theta+1},{\in}\rangle$. By the reflection property, there is some structure $A$ with lots of elementary embeddings $j:A\to B$ hitting any desired target. We may assume $A$ is a transitive set. Let $\bar\kappa$ be the smallest critical point of such an embedding. For any $X\subseteq\bar\kappa$, it is in $B$ and so there is some $x\in A$ and $j:A\to B$ with $j(x)=X$. Since $x$ and $j(x)=X$ must agree up to $\bar\kappa$, this implies $X\in A$. So $P(\bar\kappa)\subseteq A$. This implies that $\bar\kappa$ is measurable, since we can define the induced normal measure $X\in\mu\iff \bar\kappa\in j(X)$ for such a $j$ with critical point $\bar\kappa$.
The main point is that the embeddings $j:A\to B$ with critical point $\bar\kappa$ now are witnesses of $\bar\kappa_1$-extendibility, which is already a high degree of extendibility. And we can continue with $\kappa_\alpha$ etc. getting very high degrees of extendibility of $\bar\kappa$ this way. It seems we get that $\bar\kappa$ is $\alpha$-extendible, where $\alpha$ is the $\bar\kappa$th measurable cardinal above $\bar\kappa$. And much more.