The current configuration does not distinguish between e.g. A and Å, so searching for "kårlstad" returns hits for "Karlstad".
I am not sure if we should change this globally. All variations of A with diacritics are mapped to the base letter for indexing. And in a lot of cases this might be the correct behaviour, like when you don't know about the spelling or how to type a specific diacritic on a normal keyboard or mobile phone. If you remove the mapping and reindex, it should stop doing that (not sure if you need ICU then or not)
Yeah I'm a bit confused about the title of this bug versus its description... sounds like it's a search issue rather than a search sort issue?