Eric- I almost have this problem licked, but not quite.
Instead of copying emails to folder on Desktop, I created a new folder within ON MY MAC calling it Archive- [dates- from-to]. That moved successfully from my IMAP freeing up needed space, so I can breathe a little now.
I don't want to delete the previously existing archive folder in the user library because then I will lose my archived data.
Here is what I discovered. The "lost" folder is not in the ON MY MAC folder, but in an erroneous sub-folder, that I had named INBOX. (I will delete that later) I moved the "lost" archive folder from INBOX to the Mailboxes folder, (the same folder as my newly created archive folder that appears under ON MY MAC. I closed the Mail program, then reopened it, and just as I hoped, the lost folder appeared within ON MY MAC. But the trouble is, there is no DATA, that is, no archived emails, that can be seen in the Mail program, yet, the data does exist in the Finder sub-folders.
I then tried to import this mailbox with File > Import Mailboxes, but could not find the Mail folder. It was not listed as a sub-folder within Library! The folder list went from "Logs" to "Messages", skipping "Mail" and "Mail Downloads" folders. They were not there! Weird, eh? If I could import the archived folder into Mail from the ON MY MAC folder, I think my problem will be solved -- that is, the data would be imported and the archive would be seen. How can I import this mailbox if the Mail folder is not even visible from the directory within Import Mailboxes?
Thanks for your help with this dilemma!