Context menu items under "All files and folders"

Is it correct that a context menu item, created under File Types->"All files and folders", id always placed at the bottom of the list and cannot moved,whereas created under "All folders" one can actually define the location where it will show up in the context menu. Shifting a item to the top of the context menu list under "All files and folders" will cause all the rest also moving under that 1 item.

Context menus are built from most-specific at the top to least-specific at the bottom. "All files and folders" is the least specific filetype there is (as it applies to everything), so items added that way go underneath anything else.