Thanks to the fact that Obsidian just uses plain text documents stored in the Finder, it is possible to use third-party tools to accomplish some things without having to wait for a plugin. I had earlier requested a feature that would auto-file documents to a sub-folder based on certain keywords, but then I realized that this is already possible using Hazel. I have created a Hazel rule to watch the top level of my Obsidian vault and look for any documents with the keyword #people in them. It will automatically move these documents to my /people subfolder. So far it seems to work perfectly.
will this update the internal links in Obsidian?
Obsidian seems to automatically update once it notices the file has moved, though this feature can be turned on or off in the settings.
This does not seem to work for me. Can you walk through the exact steps you followed?