In other words, for a square NxN matrix A and functions satisfying the appropriate conditions, this convergent infinite sum of increasing powers of A:
c0 + c1A + c2A^2 + ... + cnA^n + ...
can be written as the n-1 degree matrix polynomial:
b0 + b1A + b2A^2 + .... + b_{n-1} A^(n-1)
The coefficients b0, ..., b_{n-1} are different than the coefficients c0, c1, ... for the infinite series, but they evaluate to the same thing.
Critical to the point you're making, the b0, b1, ..., b_{n-1} are different for differing choices of A, because the bn coefficients depend on the eigenvalues of the matrix. So you really have b0(A) + b1(A) * A, etc. The coefficients of the infinite series (c0, c1, ...) do not have this dependence on A.
That makes the 1x1 case tautological, because
b0(A) = f(A)
That is, the finite series representation is the value of the function at its argument.
There's some info on some of that here:
https://en.wikipedia.org/wiki/Cayley%E2%80%93Hamilton_theore...
When X is an n×n diagonal matrix then exp(X) will be an n×n diagonal matrix with each diagonal element equal to the ordinary exponential applied to the corresponding diagonal element of X.
Perhaps that's what GP meant?
Can you clarify what you mean here? Don't we want the function to e.g. agree with the real-valued one for 1*1 matrices?