It’s always the same pattern: After a few hours I decide to sort everything because it runs out of control but then I never do it again so it’s getting worse than before.
When playing RuneScape like 10 years ago I sorted my bank by item color. Once I started pressing the button to deposit everything at once (because it felt soooo easy) it looked like it was sorted by color but it was significantly worse, since the items I used the most were always somewhere I didn’t expect them.
Small chest size is literally the only reason why I don’t like playing Valheim. Factorio was the worst game so far. My factory worked but it was a diabolic mess that relied on me, sometimes refilling some random chests manually.
Depends on the game, but I usually sort my player inventories by item purpose. Items that never leave the inventory (quest items, alternative gear, etc) at the top, then potions/food, then ammunition, then whatever random loot I'm picking up.
As far as Valheim goes, I actually really enjoy building highly organized dedicated storage rooms with for all my loot. My brain makes the good chemicals when I go into the storage closet and see my neatly labeled chests (now why won't it do that in real life?). It's worth noting that the chest size issue gets much, much better further on in the game. You go from 10 items per chest to 24 when you get access to iron, and 32 with black metal.