At the moment in the Sublime Sidebar you can sort the folders order by Drag & Drop only if you add the folders separately (one by one) from the Project menu (Add folder to project), which is relatively OK. If you add a folder that has subfolders, sorting the order of subfolders in the Sidebar is no longer possible.
Feature Request
However, in 2024 Sublime should have as default the option to sort in the Sidebar by Drag & Drop the files order too (files present in a folder).
It is as logical as possible, it all starts from being able to set your priorities via Sublime, i.e. if today you have priorities on 5 files (and in the folder you have 20 files) don’t you think it would be useful to be able to Drag & Drop those 5 files to the TOP of that folder?
That’s why one of the big reasons large companies prefer Confluence in terms of document organization, because in the Sidebar of Confluence you can Drag & Drop files and folders as you wish. The problem is that Confluence has now removed support for hosting Atlassian on your own servers (On-prem), it only works on the Cloud. Well, some organizations due to legal regulations can’t use the Cloud, so look for alternatives. This is where Sublime could gain huge ground!
Please understand that we are humans, we have different needs, we each have our own work style and our own style of work organization.