Sort order in the file explorer seems to be divided by folder and markdown files. For instance if you try to sort element by name you get first all the folders and next all the files, no matter if a file comes first alphabetically.
Proposed solution
Would make more sense if the sort filters will treat both element as equal.
To organize a folder’s contents, I alphabetically elevate a Table of Contents note’s priority using an underscore: _TOC. However, adding subfolders pushes all notes including this _TOC note down below all the subfolders, effectively hiding it when there are many subfolders. So I have to create a separate _TOC subfolder containing the _TOC note to elevate its visibility. Unfortunately, now I have to waste time drilling down into each _TOC subfolder to access its _TOC note!
Just to add my vote that this (“sort files and folders alike”) feature would be really useful. I’m sure everyone has their own favourite example, but I thought the usecase described in Can I sort folders and files continuously in the tree view? particularly compelling.
This shouldn’t be an obstacle for Obsidian’s engineers, but everything I’ve read does say that Windows File Explorer still cannot do this. However, other navigators such as Double Commander implement alternative sorts like this through a user option (Options>Files views>Sorting directories: sort like files).
My own stopgap workaround for now is that every isolated markdown file gets its own folder (same-named only without the md extension). That makes for an extra setup step and then additional mouseclicks on each use, but multiply this by millions of users worldwide and it can’t be a good thing…