Let me show you a brief video of how "Organize desktop by name" behaves on my system:
- see how all icons are stacked at the corner
- (bonus) see, at the end of the video how I slightly move one icon, showing that it's not being aligned at all (?)
Here is my system info:
- Ubuntu-MATE 20.04.1 LTS
- MATE Desktop Environment 1.24.0
Any help will be appreciated