As stated in one of my previous posts, my version of windows and Fences are the same. (as the post I made a few days ago at time of writing)
Windows Version: Win 10, 2004, 19041.1320
Pressing 'Check for Updates' on about page reveals my copy of Fences is up-to-date
As the title says, Folder Portals ignore sorting rules if the type of display is Details or Details (Large). No other display types are affected by this issue it appears.
Every 2 items that you move, it will pop up with a dialog as shown below. You can even select a group of icons and move them out-of-place, the dialog will appear every 2 move operations.
Creating a new file in the Folder Portal (or copying another and renaming it) places it where it should go according to sorting rules, and moves existing out-of-place icons back to their correct locations.
I've tested this on two seperate folder portals pointing to seperate folders and can confirm this is a reproducible issue on 22.214.171.124.
The image below shows a Folder Portal where I've been able to move the icons around, regardless of the sorting settings. The dialog appears to say that they can't be repositioned.