mysql 5.6 replication log-slave-updates doesn't work
First, you might want to explicitly set those options to on and restart the instance (enabling binary logging requires restart)
log_slave_updates=ON
log_bin=mysql-binlog

Second, you are not supposed to replicate from a master which is at a higher version to a slave at a lower version because of incompatible changes in binary log formats across versions: https://dev.mysql.com/doc/refman/5.7/en/replication-compatibility.html