When I received this requirement, I reviewed several blogs and Google AI instructions, but none addressed my goal. After further research, I was able to achieve it and would like to share an article that aims to enable the 'Filter by' option for the Name column.
When a document library is first created in Modern SharePoint Online, you'll see the Name, Modified, and Modified by columns, with All Documents set as the default view.
The 'Filter by' option is available for the Modified and Modified by columns, but not for the Name column.
Top right down to '+ Create or upload' you will see Options (click on it) > Edit View.
In Edit View, under columns, after scrolling down you will notice three types of Name columns as shown below.
1. In Display, Uncheck, Name (linked to document with edit menu).
2. In Display, Check, Name (for use in forms) replace the Position from left.
3. Click OK to save the modifications.
Once redirected to the view, you will notice Filter by option for the Name column.




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