You can drag-and-drop folders within an account's hierarchy to whatever order you want. But be careful! - it's a delicate operation and it's easy to accidentally drop a folder into another folder rather than between them.

As of Thunderbird version 149 there's a new option to "Reset Folder Order" which will automatically rearrange them in alphabetical order.

I am running that version and a quick look for rest folder order is not found in settings. Can you help further?

If it's there, the option is found in the right-click context menu of the account name in the Folders List. See the attached animation. I no longer have version 149 installed, but the option is definitely there in version 150.x.