It sounds like you never tried, my car stereo does indeed work just like this. If you look at the specs of car stereo brands at crutchfield you’ll find similar limits like X000 songs.

It’s more likely poor programming than lack of cpu power. I personally prefer filename sorting rather than metedata sorting for this reason.

There’s very expensive stereos that might do it but they tend to come with Android etc, and those companies don’t want you to be self-sufficient.