The feature to reorganize folders in alphabetic order is in the monthly release (146). rightclick on account in folder pane and the reset order option is there. Otherwise, there is an addon - https://services.addons.thunderbird.net/en-US/thunderbird/addon/manually-sort-folders/ but I have not tried it, nor do I know if it is supported in current releases.

This is not the issue I am having...... When you go to move an email from the inbox to a local folder when you get the screen to choose the most recent folders that is not in alphabetical order anymore.

When you go to move an email from the inbox to a local folder when you get the screen to choose the most recent folders that is not in alphabetical order anymore.

I don't remember whether the "Recent Destinations" folder list has ever been sorted in alphabetical order. Actually in TB 146 the recent destinations are sorted in chronological order: the most recent destination is at the top of the list and the oldest destination at the bottom.

There is a recent bug report concerning this issue https://bugzilla.mozilla.org/show_bug.cgi?id=2000453 "Move/Copy to > Recent: Target folder list is more difficult to use after Bug #1829748 which changed the list to most recently used topmost, not alphabetical"