Gave up "analogue" sources/media back in the 90s but I keep my CD rips and online digital purchases sorted by artist/album, in alphabetical order. Compilation albums are in their own folder, sorted alphabetically by album name. I briefly considered segregation by broad genre categories but decided it was unnecessarily complex.
Manage my music via Roon; so from a playback perspective the file organization is largely irrelevant. In my car it’s a different story. The head unit allows browsing by file location and I often use this feature to select. I normally listen to entire albums at a time.