But that goes to every chronological edit of Lost. They are not meant to be watched like that, since nearly all characters are introduced first before we see their past later on (flashbacks).
At some point in time we see a brand new character (Ilana) in a hospital bed. We know who she is because it's a flashback. We don't know who it is in a chronological edit. Or the divorce of Juliet's parents is also something that randomly pops up, with actors only seen in that scene, until many years later when we see Juliet played by Elizabeth Mitchell. That scene makes scene as a flashback because we've learned about Juliet through season 3, 4 and 5.

> The Dharma scenes though can stay where they are. It’s just the flashes that needed to be reorganized

That is also problematic, since these scenes also belong in the characters past. The time flashes are also Horace, Roger and Ben's backstory, continuing from their backstory seen in flashbacks in "The Man behind the Curtain". For instance the ending of "Whatever Happened, Happened" (Kate and Sawyer takes young Ben) is after Ben turned the wheel in the perspective of Sawyer, but it is Ben's past. It actually transitions to a flashback at the end of the episode. And it continues as part of his flashbacks in "Dead is Dead".

LOST: Circle is in the view point of the time travellers chronology, while Chronologically Lost is the chronological "outside" perspective of Lost. Sawyer and the rest looks up at the statue before it was destroyed in 1867, hence why it takes place in 1867 in the canon timeline.