I think having everything sorted into their own categories in tabs and not show up in other tabs at all be the better option here. The system is partly in place, we just need to have it so that the items in the categories doesn't show up in other tabs. And let us have full access to all the tabs in stores so we can sell stuff from them.
Some items need to show up in more than one category tab tho, like items that can be used in crafting, like weapons, potions, food.
There should be one tab for weapon and armor, amulets and rings, one for craftables, one for keys, one for consumables, a general one where unidentified items go and other items that doesn't have a specific category code, like spoons and forks and plates and such, one for quest related items.