Using Classic Outlook on Windows for personal email, calendar, and contact management
Given that this issue was raised July 2023 and the number of complaints in the thread, I would suggest we could all assume that Microsoft has no intention of addressing or fixing this issue.
For those who have been forced to go the the 'new' Outlook, I feel your pain and I am sorry for you. It is ridiculous that such a simple thing is not enabled and impacts on people workflow and efficiency. Personally, I have a choice and will continue to use the older version of outlook where manually sorting folders is still enabled.
Perhaps the big corporations using enterprise versions of this software should start rolling back to the previous version. If enough people stopped using apps and software that is unfit for use, then Microsoft may listen and would start to lift is game and actually serve its customer instead of treating us as commodities attached to $s.