The Jewish principle of having greater commands superseding the lesser commands easily solves this contradiction. Craig Keener notes that some sages might demand a greater honor than parents in principle, but neglecting a father's burial would make the son a reproach for the community. The command of Jesus is definitely difficult, as it indeed basically asks to denounce the most basic rites and rituals of our the society. If Jesus had himself neglected the rituals, customs and tradition for the sake of his spiritual or religious endeavors, then he would have been himself living as a reproach in his family, to be seen as arrogant antisocial. Either Jesus really practiced and preached such an austere lifestyle for all his followers, or these words were rhetorical. Jesus and John the Baptist were basically close to the Essenes and did not live a regular life, so it is safe to assume that prophets and strict disciples must have denounced a lot of societal norms, as evident from their lives. John was living as in the wilderness, eating grasshoppers, he must have cut all ties with his family. The way John and Jesus died clearly shows that they defamed their family name on the social level. We should also rethink about the command of honoring the parents, that these things like neglecting the funeral doesn't violate the honor, but things like not providing for their needs (Mark 7:11-12). In Matt 12, Jesus didn't acknowledge his mother:
[Matt 12:46-50 ESV]
46While he was still speaking to the people, behold, his mother and his brothers stood outside, asking to speak to him. 47--- 48But he replied to the man who told him, “Who is my mother, and who are my brothers?” 49And stretching out his hand toward his disciples, he said, “Here are my mother and my brothers! 50For whoever does the will of my Father in heaven is my brother and sister and mother.”
Jesus had made it clear that his followers would have to hate his family to follow him, if necessary; and that he came to bring division among family members with a sword, not to bring peace. Another reason for this extreme urgency and determination to follow God could be the impending end times (the genocides by the Romans), for which he came to rescue his people.
[Luke 9:57-62 ESV]
57As they were going along the road, someone said to him, “I will follow you wherever you go.” 58And Jesus said to him, “Foxes have holes, and birds of the air have nests, but the Son of Man has nowhere to lay his head.” 59To another he said, “Follow me.” But he said, “Lord, let me first go and bury my father.” 60And Jesus said to him, “Leave the dead to bury their own dead. But as for you, go and proclaim the kingdom of God.” 61Yet another said, “I will follow you, Lord, but let me first say farewell to those at my home.” 62Jesus said to him, “No one who puts his hand to the plow and looks back is fit for the kingdom of God.”