A&E places this episode BEFORE "The General," although many people state that it should be afterwards, as No. 2 does not say "the NEW No. 2," just "No. 2," and he has already been seen in "The General."
Sorry, this has already been mentioned on the "Episode Order" section, but I thought I'd bring it up again. (Aren't I sinister?)
I'm presently contributing after doing research on and becoming increasingly fascinated with "The Prisoner" series. To date, I'm heavily immersing myself in the late-night Friday showings of each episode on Channel 13.
Personally, I'd have further enjoyed this already rather titivating episode if, ultimately, it all turned out to be an elaborate mind game/mind trick to which Number Two--or even more radically, a completely different Number Two--subjected Number Six. To put it another way, Number Six entering the lab, manipulating his own dream, etc., were all instruments of a ploy being inserted into Number Six's conscious.
Who knows, maybe he never woke up?