Arranging Icons by Type Does Not Sort by Extension

CAUSE

When you choose to arrange icons by type, Windows 95 sorts the icons according to their registered names. Extensions are not used unless the file type is not registered. For example, files with .EXE extensions appear before files with .BMP extensions.

Note that this behavior is not as apparent if you clear the "Hide MS-DOS file extensions for file types that are registered" check box on the View tab. To see this tab, click Options on the View menu.