Custom View Separating Hosts within same Folder

When creating a custom view using grouping by folder name, hosts that are configured under the same folder name are being separated in the view. I need all hosts to be grouped by their retrospective folder name.

Any ideas?

FIXED:

You have to sort by hostname as above.

Previously I was sorting by site, then an additional condition sorting by site name AND hostname so there was some contradicting conditions

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