Hi MICHAEL,
Welcome to Microsoft Q&A forum.
I understand how frustrating this is, especially when a feature you use every day changes right after an update.
According to Microsoft’s documentation, Gmail accounts connected to Outlook are currently undergoing some changes in the folder pane. Microsoft also notes that items such as Starred may no longer appear the way they did before, as they are being replaced by Outlook’s Follow Up / Flagged experience.
As for folder ordering, Microsoft still documents that new Outlook supports rearranging folders, but Custom folder order must first be enabled. In Mail, go to View > Folder pane > Custom folder order, then check whether your custom folders can be dragged again or whether the Move up / Move down option appears when you right-click them.
If Custom folder order is already enabled and the option still does not appear, the most appropriate next step would be to submit feedback directly from Outlook through Help > Feedback, and include the exact version you are using: 16.109.1 (26051717). This will help the Outlook team determine whether this is a recent build change or an issue introduced after the update.
Please note that this is a user-to-user support forum. Moderators, contributors including external Microsoft employees cannot directly intervene in Microsoft product features or access back-end systems. Our role is limited to providing technical guidance on reported issues, requests, or ideas only.
Thank you for your understanding.
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