Have a look at these options in the server settings:
With the manual sort, it would always work
Unfortunately, per my original posting, the servers settings are set to Sort systems on each agent-server communication. See below.
System Tree sorting:
Have you confirmed that System Tree Sorting is enabled for your systems?
Per my previous post, System Tree sorting is set to Sort systems on each agent-server communication, in addition Tags are evaluated on each agent-server communication. The Tag evaluation works fine but not the system tree sorting.
Is there somewhere else I need to look?
I've just done a quick check of what I originally wrote only to find that doing a manual sort using the Actions / Directory Management / Sort Now option does not in fact work. Doing a Test Sort does work ie it correctly identifies where the selected machines should be placed in the System Tree, and if you subsequently choose to move them, they do in fact end up where they should be. So perhaps the Sort algorithm is working but the Move part of it (in Sort Now) isn't.
So is everything is in lost and found ?
You might think that everything would end up in Lost&Found but no, that has not happened. There are 2 machines only in Lost&Found, both show as managed and have valid Tags, although neither has communicated within the last 17 days. I have tried sorting a subset of machines which are in My Organisation\MyDomain and they should be moved, based on their tags, to a mix of subgroups below MyDomain but they stubbornly refuse to move. I have tried sorting both managed and unmanaged machines, but none of them is moved anywhere. A Test Sort shows that all of the unmanaged machines should be moved to Lost&Found and that all managed machines should be moved to their respective sub groups, it just doesn't happen when Sort Now is chosen.
Have you checked each system doesn't have Sorting disabled? Easiest way to is add the System Tree Sorting property to your System Tree view. You can enable your tagging criteria to evaluate on each agent-server communication and have a global System Tree Sorting setting to sort on each agent-server communication, however if sorting of the system is disabled it wont be sorted, even if you attempt to manually.
If sorting is disabled you can change the status by select the target systems and from Actions | Directory | Change Sorting Status).
Thanks, you've nailed the problem on the head. I had no idea that you needed to enable system tree sorting per device. Kinda defeats the purpose I would have thought. Surely there is a way to have your devices automatically sorted into the appropriate sub-group without first having to enable System Tree Sorting on each device? I'm sure I can create a server task to do that, and in fact already do for some devices for which there are insufficient tagging options.