Originally, most gun makers used a separate number series for each model. Of course, that led not only to duplicate serial numbers, but also meant that anyone attempting to trace a gun had to know the model, which was often not marked on the gun. Then, under the Gun Control Act of 1968, then-ATTD (now BATFE) mandated that serial numbers had to be unique within a manufacturer's production. That led to some of the S&W changes and also to numbering like that used by Ruger, which has a prefix indicating the model.
Then some wisea** at S&W figured that with modern computer horsepower, any serial number could be put on any gun and didn't need to connect to a model number at all. So ABC1234 could be a Model 36 and ABC1235 could be a 686 and no one cared. So if there is a need to trace a gun, all that is needed is the serial number, not the model, caliber, finish, or anything else about it.
Jim