Steps to reproduce the issue

Change the data entry mode for tags to Nested (not ajax)

Expected result

Dropdown menu sorted list of tags

Actual result

Top item is not sorted, it is the tag with the lowest ID

For example if tags are created in this order: One Two Three Four Five
The Menu order will be: One Five Four Three Two
Where "Five Four Three Two" are sorted, and "One" is the first tag created

System information (as much as possible)

Joomla 4.4

Additional comments

Side issue, Tags are not correctly sorted in Cassiopeia blog articles, similar behaviour