Default Sorting by 'Position' not working

[MagePsycho]

When we have this extension installed, default sorting by position doesn't work.
Any idea how to tweak for this? Also sort by created_at only works if we use the following sql update:
UPDATE catalog_eav_attribute
SET used_for_sort_by = 1,
is_searchable = 1
WHERE attribute_id = (
SELECT attribute_id FROM eav_attribute WHERE entity_type_id = (SELECT entity_type_id FROM eav_entity_type WHERE entity_model = 'catalog/product') AND attribute_code = 'created_at');

is_searchable = 1 --> is important