Unchecking the 'Subscribe' box(s) hides the folder(s) but it may take a few minutes for the folders to disappear.. If there are sub-folders, they should be unchecked as well. This works on my PC w/ T-Bird 140.8.0esr.Right-click the email account head...
In my case with 'Hotmail,' as was previously mentioned, I went to Tools> Options> Security> Saved Passwords' and deleted the passwords for Hotmail. Closed and reopened T'bird, and when asked, re-entered relieve/send password. It seems to have resolve...