On the Conversations tab, the folders can be re-ordered from the middle pane where all the conversations are listed. Under the + sign to add a new conversation, make sure the sort is set to "None.” Then choose “All” from the All/Highlights/Favorites /Muted views so you can get a full list of all your folders. From the list of folders on the left side, choose “All conversations.” At this point, you can drag and drop the folders (as shown highlighted in yellow) in the middle section into the order you want.
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