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Outlook 2016 folder list unable to rearrange and PST files opening as subfolder of other folder

Hello fellow Experts Exchange members:

I have a user experiencing the following issue with Outlook 2016 (the Office 365 desktop application):

Somehow, the folder pane is showing the different folders seemingly in groups (I have attached an image).

I cannot drag the folders in Outlook to move them up or down in the folder list.

Also, even more unusually, when I open any PST file, it appears *inside* the top folder (as a subfolder) and cannot be moved out of it.

I have reset the views in Outlook by launching it from the command prompt with the /cleanviews switch and also have recreated the user's Outlook profile, but the view has not changed.

Has anyone seen this issue before and either reversed it or found a workaround?



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8/22/2022 - Mon