First of all, reaching an OG of 1.068 on a recipe of 1.074 is actually closer to target than you think, so you did a decent job.
The problem with BIAB and high gravity results from grain absorption.
You can mill finely to improve your extraction, but even if you could extract 100% it won't solve the problem.
Since you are necessarily decreasing the water:grain ratio with high gravity brews, the grain absorption as a percentage of the mash water is going to rise, and so the gravity points lost to grain absorption will rise with it.
You basically have three options to improve efficiency:
1. Decrease grain absorption by wringing out/pressing the grains in some way
2. Sparge
3. Decrease your ratio of grain absorption by increasing your water:grain ratio with more mash water and increase your boil-off to compensate.
Or use some combo of the above three.
Example:
Let's say you use 12# of grain, and mash with 8 gallons of water.
Assume grain absorption is 0.12gallons/pound of grain, 100% mash conversion, no dead space, and boiling off 1 gallon in 60 minutes:
Grain absorption is 1.44 gallons, leaving you 8-1.44=6.56gallons of pre-boil wort. You would boil-off 1 gallon leaving 5.56 gallons to fermenter with an OG of 1.064 and a to-fermenter efficiency of 82%
Now you do the same brew but you increase your mash water to 8.5 gallons. Lets also squeeze the heck out of your bag, decreasing your grain absorption to 0.06gal/pound. Lets say you also boil for 90 minutes and more vigorously so your boil-off rate increases to 1.5 gallons per hour. The same brew would look like this:
Grain absorption is 0.06*12=0.72gal, leaving you 8.5-.72=7.78gal pre-boil.
You would boil-off 2.25gal, leaving you with 5.53gallons into fermenter with an OG of 1.072 and an efficiency of 92%
I've neglected a lot of details like hop absorption, cooling loss, and deadspace but you get the idea. You just increased your efficiency by 10% and you didn't even have to sparge.
To answer your question, on a smaller batch size since you will boil off the same hourly rate as you would on a big batch, so the proportion of boil-off to mash water will increase and you should get a somewhat higher efficiency.