Problem
Thunderbird is not listing IMAP folders correctly.

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