Assign to Bag missing from the Sorting menu.

where base UI looks like

You need to change the "Sort method" to "Blizzard" in the settings to make the Blizzard preferences visible and apply.

then I'll note here, they were applying even when not visible, if that was the intention, I might disagree, but such is life... If not the intention, it was still sending items to a bag that had been marked 'equipment' even when I couldn't see the setting to turn it off.