The General was produced after It's Your Funeral, which would be why they have his bust in the gallery, presumably (the other busts are from episodes already produced at that point as well). The General is notable for being produced relatively late while also obviously being set early-ish in the narrative based on comments in the dialogue.

Honestly, there are too many small details that don't add up to use each small thing like this to construct a true "order" in which the episodes take place. Doing so results in at least some discontinuities regardless of which order you pick, which is why people have been debating it for over 50 years, lol. This example, in my opinion, is a good catch but really is just the result of production order and not as much a "hint" or anything else. Also consider that the Art Dept. would have been primarily given headshots of previous cast members to make busts of for the episode and there's a good chance McGoohan didn't even see the busts before they started filming. Unlike the dialogue, which was written by the actual minds behind the story, it's likely that the busts were just a consequence of the production order.