I'm using Thunderbird to access my Office 365 mail account and it has been working fine (a couple of month ago I also switched to OAuth2 due to deprecation of basic IMAP authentication). However, since 2022-11-01, Thunderbird is unable to subscribe to IMAP folders. Last time I know it was working was last Friday 2022-10-28. Thunderbird is able to list to available folders (e.g. when opening the "Subscribe" dialog from the mail account settings), but cannot subscribe to them. I enabled IMAP logging in Thunderbird, and it shows that the server answer the subscribe request with "BAD SUBSCRIBE".
It is not a password/authentication issue, as Thunderbird can still see the content of "Inbox" and "Deleted Items". And if I disable the option "Show only subscribed folders", it can access everything in my Office 265 account.
Edit: here's the relevant logs from Thunderbird (note: I've replaced the actual folder name with "xxxx"):
[Parent ...: IMAP]: I/IMAP ...:outlook.office365.com:A:SendData: 76 subscribe "INBOX/xxxx"
[Parent ...: IMAP]: I/IMAP ...:outlook.office365.com:A:CreateNewLineFromSocket: 76 BAD SUBSCRIBE failed.