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I have two problems.
1) Auto-sort for items does nothing that i'm aware of. I've got it enabled, but my items do not sort at all.
2) Newly acquired items show up in the last available slot when organizing inventory, instead of the first open slot. ie. i had 70ish items, moved 50 to retainer, get a new item and gets placed in slot #71
Auto-sort was always going to be an after-launch thing. I think it still had some issues.
The other problem... I've never had that happen. o.O
Sounds like a retainer bug in particular, because moving things around in the inventory itself doesn't trigger this.
Auto-sort does work. It separates everything you get AFTER you turn it on. Anything you got before turning it on stays in the place it originally was. But from then on, it sorts according to some unknown manner. One of my bags has all Consumables for example, and another has Ingredients/Dyes. This is how it happens for me anyway. Anything placed anywhere has something in common with the other things sorted in that bag.