Emails being sent to Deleted Folder

I have a folder specifically for receipts from PayPal. I set this up because my emails from “service@paypal.com” were all being redirected to trash. I created a rule for incoming emails to be sent to newly created folder. This rule had no effect on the original issue. If I manually move emails from the Deleted folder to the receipts folder, the emails will stay in the receipts for moments and then return to the Deleted folder.

I’m using the Mail app on iPhone 15 but it also happens on Mail app iPad and in the Outlook app.

I have added the incoming mail sender to safe contacts, address book and VIP.

Any help available?

Thank you