You're looking for validation.h and its corresponding .cpp source file.

You should start at CChainState::ActivateBestChain. This subroutine calls CChainState::ActivateBestChainStep which runs the logic you're interested in - stepping one by one of the blocks, cleaning up and reorg'ing from lowest to highest PoW.

First, ActivateBestChainStep walks the chain in a while loop: while (m_chain.Tip() && m_chain.Tip() != pindexFork) cleaning up blocks which are not in the best chain using DisconnectTip(state, chainparams, &disconnectpool). This partly answers your question - all the blocks which aren't in the best chain are weeded out here.

It then walks through the current CBlockIndex organizing blocks using the next while loop: while (fContinue && nHeight != pindexMostWork->nHeight). pindexMostWork is a CBlockIndex that contains the blocks with most work. Inside there is a loop which selects the blocks it should connect to the best chain: while (pindexIter && pindexIter->nHeight != nHeight). It pushes the candidate blocks onto a locally allocated vector std::vector<CBlockIndex*> vpindexToConnect;.

Next it iterates this new vector in reverse, pushing the blocks with lowest work first: for (CBlockIndex *pindexConnect : reverse_iterate(vpindexToConnect)) connecting each to the tip. The last connected block will be the block with the highest work index. This builds a chain sorted from lowest to highest work.

Several places in the code call ActivateBestChain, among them:

• invalidateblock and reconsiderblock in rpc/blockchain.cpp
• ThreadImport in init.cpp
• ProcessGetBlockData and Processmessage in net_processing.cpp
• Several subroutines in validation.cpp itself

You can use any of the above to trace how and when a new best chain is activated. I think the most interesting ones are in net_processing.cpp as those are the ones triggered by messages received from the network.