Living World episodes can be played in any order and also replayed, unlike the Personal Story which you can only play in chapter order and may only do so once per character.
Living World Season 2 is like show season available on Netflix. There is a linear order to the story episodes but the user may choose to play any episode they like (or in the case of this bug, the system is pointing you to the last one you unlocked instead of the next one in story order).
I don’t believe this is messaged clearly in the game, so we’ll be looking at ways to better communicate this. Your feedback helps, so thanks for taking the time to report your issues and share your ideas with us.