Can you ovulate in current cycle if you still have a functional cyst from previous cycle inside the ovary? or can this functional cyst ovulate this month if egg was not released before?

We call them functional cysts, either follicular cyst (the egg was not released then the sac is filled up with fluid) or luteal cyst (the egg was released then the sac is filled up with fluid). So the follicular cyst is made because the egg could not be released so the next cycle a different egg will be released and a luteal cyst will develop. Both types will go away in the next 4- 6 weeks.