Mail.app: Subfolders not showing under Inbox but under own section
I'm using IMAP and want to see subfolders of Mailboxes under them. The default folders are setup in Mailbox Behaviours to be under INBOX/Junk/Drafts/etc. The problem is new subfolders are moved under a separate section. Mail was restarted multiple times and I tried creating the subfolders on the server and in Mail and it's the same.
This was working in the past but I haven't done it in Sierra before.
Old mailbox: I created subfolders and they were added under the account's Inbox.
New mailbox: Subfolders are added under a separate section.
Any ideas on how to get the custom subfolders to be displayed under the mailbox Inbox?