I don't think you understand, it does not matter what is showing in the bottom view. There is the name sort un-group option when you left click the name column title , it is there. It does not work properly.
If it wasn't meant to work, why put it as an option?
Just did another test, same behavior even if you don't use search.
1) Pick any artist with multiple albums. Those albums will now show up in the bottom view.
2) Left click the name column title to sort by name(removes grouping temporarily), it will momentarily change and then switch back.
It does not do this if you hit refresh before trying step 2). It will work as expected.
If you are supposed to hit refresh after choosing an artist and before sorting, it should say so when you choose the sort option.
This is no longer a problem for me since I know to refresh. Just posting this for others.
Can't explain any better, if no one else can duplicate this than there are stranger things going on.