Fix IMAP Folder Listing In Thunderbird

Problem

Thunderbird is not listing IMAP folders correctly.

The Thunderbird IMAP Server Directory needs to be updated in Thunderbird Settings.

Click Tools > Account Settings

Click the Tools menu > Account Settings
Select your email account from left
Click Server Settings
Click the Advanced button

Click the Advanced Button under Server Settings for your account.
For IMAP server directory enter INBOX

Set IMAP Server Directory to INBOX
Tick Allow server to override these namespaces
Click OK
Close and restart Thunderbird for the change to take effect.