Hi!
I love this type of programming exercise. I've been spending more than a year experimenting and using dependently-typed programming, since I discovered it, however, to be honest, I've been using Haskell, not Agda. So, this will be a learning process for me too. On the other hand, from what I've heard, Agda makes dependently-typed programming much easier than Haskell, having been designed for it. For the problem at hand, I would start by writing the list type in the straightforward manner of Cons | Nil, but add the constraint that the new head be lower-or-equal (reps. greater-or-equal) to the min (resp. max) bound of the new tail, which seems to be what you have in your emacs screenshot. The sorted-list-to-plain-list part is probably trivial. I've written quite a lot of Haskell related to weakening bounds, and I hear it's much easier in Agda.
Thanks, best regards!