The new Microsoft indeed. Sometimes it seems like a full time job just staying ahead of Apple's apparently evolving efforts to break its own software. Lovely. I've said before, the new corporate motto seems sometimes to be "If it aint broke, quick break it. Apple smash." Now it seems that every time my system idles, iTunes helpfully locks all of the harddrives and crashes. Then there's no talking it out of it, and a hard restart is the only remedy. Very much the opposite of endearing. My love/hate relationship endures.
In terms of sorting, you can happily get iTunes to do that for you. May not be a default, but in the settings you can get it to show the "file type" column. If you then go to view by tracks and click on the "file type" heading, it will automatically sort everything for you. "AAC" and "Protected AAC" will be the cloud droppings from Apple. Everything else should be what you did on purpose, in whatever file type was your default for importing. Joy.