No, it works on some categories and on others it does not. Also, it seems to change the link (url) for the category sometimes, which screws up SEO and links on the site. I’m surprised that more people do not report this as a problem.
I got same issue !!!! in magento 184.108.40.206 , tried a long time but not solve , and not sure what happen .
Sort by position is not work at all in frontend ...
But a case is , if there is parent category is anchor , ( of course there are other sub-category behind )
The parent category is able to sort by position , very strange !
See worked samples in:
-------------- they are work
but not worked samples in :
I think it should be a bug , but seems that 1.7 sample data is ok . Thanks