Rubberduck should use Path.To.Folder rather than Project.Module when you select "group by location". Otherwise, what's the point in all our nice '@Folder annotations:

Given the code inspections require a successful parse, the folder annotations should always be available when code inspections are.

I propose getting rid of the other option entirely, or adding a group by module option for the old behaviour and make group by location do the Rubberduck way.

The default alphabetical sorting is sufficient, an expansion would be to bring the collapsible folder tree into the code inspections window (indeed the whole of project explorer with search and filtering options could be interwoven into the code inspections window to make locating inspection results much more seamless).