It was once suggested that the episode ‘Living In Harmony’ should be placed in the running order of the Prisoner second from last, just before ‘Once Upon A Time’ in fact. This is due to the idea that during ‘Living In Harmony’ "they" are grooming Number 6 for a position of authority offered to him during ‘Fall Out,’ as Sheriff in Harmony.
But surely the Sheriff had resigned his job at the beginning, just as the Prisoner had done, and for reasons of his own. Perhaps he had become fed up with putting his life on the line every day for a few dollars a month. Having to face up to every two bit gunslinger who rode into town looking to get himself a reputation! True the Judge was using every strategy to coerce the stranger into becoming Town Sheriff of Harmony, which the stranger resisted. But one can only resist coercion for only so long, and so reluctantly he was forced to accept the position of Town Sheriff, when his hand was forced.
It's one point of view I suppose, that The Man With No Name was being groomed for a position of power, as Sheriff. But really at the end of ‘Living In Harmony’ we do actually learn the reason behind the episode "Fill him full of hallucinatory drugs! Put him in a dangerous environment! Talk to him through microphones. Give him love, take it away. Isolate him. make him kill, then face him with death. He'll crack. Break him, even in his mind, and the rest will be easy."
Be seeing you