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This feature works wrongly
It does not put images by name and messing things up, e.g.:
0000.01. - to be positioned before 000000.old1.01.2, while it should be above it, as 000000.old1.01.2 is the lowest by name and order

Not sure we understand exactly what you mean in that example, which one is before the other? Arranging by name does a lexical compare, so 11 would be ordered before 2 for example.

Arrange by order uses the order of the Hierarchy, so you can customize the order in there by drag & drop.