Though list.sort() and sorted(list) have the same key and reverse optional arguments and can be called on each list element prior to making comparisons, there are many differences between them:

The function sorted() did not have to be defined. It’s a built-in function that is available in a standard installation of Python. The sorted() function, with no additional arguments or parameters, is ordering the values in numbers in an ascending order, meaning smallest to largest. The sorted() function provides sorted output and does not change the original value in place. So, when sorted(list) is called, it provides an ordered list as a return value.
There is no ordered output of list.sort(), so it returns None. The list will be sorted in place, and the original order is not maintained in any way.

list.sort() is a list method and can be used with lists only
sorted() is a built-in function and can be used with any iterator like list, tuple, set etc.

list.sort() returns None
sorted(list) returns the sorted list

list.sort() sorts list in-place, so the original order is lost
sorted(list) returns sorted list leaving the original list and its order unchanged

The primary difference between the two is that list.sort() will sort the list in-place and returning None, whereas sorted(list) will return a new sorted list leaving the original list unchanged. Another difference is that sorted() accepts any iterable while list.sort() is a method of the list class and can only be used with lists.