IMHO, when the meaning is clear that we are talking about a verse, آية should be translated to verse since this is what conveys the meaning most accurately to the English speaker. Of course we can discuss whether it is clear that this is the meaning of آية in the current verse.
I agree that آية
should be translated "verse" when the context makes it clear. The example you quoted, however, 16:101, seems to suggest "verse" because of the use of the verb ينزل
which means "to send down." Closer inspection, however, weakens that suggestion. Consider
So, my inclination is to translate آية
as "sign" unless the context makes no doubt that the reference is to a verse, such as