When it's off, the sort order returns to the previous order. When this button is highlighted, the folders will sort in alphabetical order. To reset the Mailbox folder list to alphabetical order (with Inbox, Drafts, Sent and Deleted items grouped at the top), click the Show All Folders A to Z button on the Folder tab. Go to the Folder tab and click on Show All folders A-Z to turn this off. If Move Up and Move Down are missing from the menu, you have the folders locked in alphabetical order.
Select a folder and drag to a new position or right-click and use the Move Up and Move Down commands. This is a change in behavior from older versions. Outlook 2013 and upīeginning with Outlook 2013, you can arrange your folders in the folder list in any order you want.
To fix it, use the Regional Settings applet in Control Panel to change the language on your computer, then restart your system. If the last folder you used moves to the top of the Folder List, it means that the language setting on your computer is probably different from that on the Exchange Server.