Some more info. I have explicitly entered a phonetic name for all my contacts to make them sorted alphabetically. It seems Signal is not honouring this phonetic name when sorting contacts.
@hrzhu I'm not familiar with Pinyin sorting (in fact don't know much about the Chinese language at all). But I do wonder how it would work in conjunction with Chinese characters used in a Japanese context.
Also, what is your Android language setting? Can you confirm whether changing this gets the desired sorting or not?
I'm confirming the issue with not sorting by manually entered phonetic names. Every other app seems to respect this properly and Signal best would too.
I tested in a few steps:
I entered as example contacts:
A summary of my findings:

Left image Android contacts puts them at the bottom and fails to even make different groupings.
Right image Signal does make character groups, but also appends them to the bottom, not sorting by the romanized version.

Android contacts now groups correctly based on the phonetic name. Signal is unchanged.

With Android contacts, this language setting changed the sorting to put the Roman alphabet at the bottom. The grouping also changed from one blob to 2. Which appears to be one for Hiragana and one for Kanji?
Signal did the same thing, but with 3 groups.
Note that in _both applications_ also the inner order changed and 田中隊長 switched places with 夢さん.

Here as well, Android contacts respects the phonetic name where Signal remains unchanged from before.
So here's my tests and observations.
All in all, I hope Signal could honour phonetic name when sorting contacts. This could save me most of the hassle.
GitHub Issue Cleanup:
See #7598 for more information.
Most helpful comment
@hrzhu I'm not familiar with Pinyin sorting (in fact don't know much about the Chinese language at all). But I do wonder how it would work in conjunction with Chinese characters used in a Japanese context.
Also, what is your Android language setting? Can you confirm whether changing this gets the desired sorting or not?
I'm confirming the issue with not sorting by manually entered phonetic names. Every other app seems to respect this properly and Signal best would too.
I tested in a few steps:
I entered as example contacts:
A summary of my findings:
Without phonetic names, Dutch
Left image Android contacts puts them at the bottom and fails to even make different groupings.
Right image Signal does make character groups, but also appends them to the bottom, not sorting by the romanized version.
With phonetic names, Dutch
Android contacts now groups correctly based on the phonetic name. Signal is unchanged.
Without phonetic names, Japanese
With Android contacts, this language setting changed the sorting to put the Roman alphabet at the bottom. The grouping also changed from one blob to 2. Which appears to be one for Hiragana and one for Kanji?
Signal did the same thing, but with 3 groups.
Note that in _both applications_ also the inner order changed and 田中隊長 switched places with 夢さん.
With phonetic names, Japanese
Here as well, Android contacts respects the phonetic name where Signal remains unchanged from before.