When I first started growing my stash, I'd wash everything, then I folded all my fabrics with the raw edges together. It was simply easier to fold 4 or 5 yard lengths that way. It wasn't until I bought a bookcase to organize my fabric that I started folding fabric with selvedges together. I realized that they all ended up the same width whether I had half a yard or 3 yards.
This thread reminds me of an incident between my MIL and I years ago. She came to visit and was helping me fold laundry. She insisted on folding the towels a certain way. She could not figure out why I folded them differently. I asked her why she folded the towels her way, and she said because that's how they're SUPPOSED to be folded, that's the way she was taught. I told her I folded them my way because the shelf they sat on was very narrow, and they would fall off into the toilet if I folded them normally. She continued to fold them her way, and I kept my mouth shut and re-folded them after she left the room, lol.