Using Classic Outlook on Windows for personal email, calendar, and contact management
The thing is, that it is not supposed to change it in alphabetic order. The users expect the functionality like in the "old" outlook: Manual sorting and if necessary alphabetic sorting over the context menu.
Of course. It's a band-aid to a problem. I am simply providing a solution that worked for me. There's obviously an inability to sort folders on the new Outlook and all I am saying is that I accessed the web version and noticed my folders were suddenly sorted vs my unsorted desktop version. I restarted the desktop version and voila...folders were sorted.
Again, for anyone looking for a possible temporary solution to sort folders on the new Outlook regardless of how it works, log into your M365 account via web and access the Outlook web version to see if your folders automatically sort. Then restart the desktop version. Let us all know if it worked for you. I hope it helps those who prefer to be on the new Outlook as we patiently wait for Microsoft to fix.