Privilege of the Sword occurs between Swordspoint and Fall of the Kings, but it came out five or six years after Fall. I don't know what order they were written it, but it's perfectly possible that at the time that passage was written, Kushner wasn't recapping a story she'd already told.

Going to go ahead an be an insufferable namedropper and say I'm still exceedingly pleased with myself for Ellen Kushner giving me this retweet last month. Though I'm sure it makes absolutely no sense out of context.