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Works fine here.

And I use Outlook for my day job. If you think Mail is awful, wait until you try to use Outlook. 😀
It seems that Outlook is geared towards business. I have too much Apple devices to jump ship...in fact, I use Microsoft Office and the first thing I did was to delete all other apps except Word and Excel.
 
Well, one cannot remove "favorite," one can only just remove the mailbox from favorite. I would like to replace the word "favorite" with the plain mailbox.
 
You can’t remove or rename favorite, what you can do is click and drag it below any other accounts you have listed on the left hand side.

Outlook is also set up in the exact same way with favorites at the top.
 
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Did you try dragging favorite? Did it work? I don't think so...
Mailboxes should be at the top and favorite under "on my Mac"...
Yep, just done it.

Click on the word “favorite” and you can drag it below any of the accounts.

You can do this with inboxes and “On My Mac”
 
Yep, just done it.

Click on the word “favorite” and you can drag it below any of the accounts.

You can do this with inboxes and “On My Mac”
Thanks...just tried again...it worked, wow! Now, I can rearrange
 
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It seems that Outlook is geared towards business. I have too much Apple devices to jump ship...in fact, I use Microsoft Office and the first thing I did was to delete all other apps except Word and Excel.
My preference would be to not use Outlook for anything on the Mac, and Mail seems perfectly adequate for email. But Mail/Calendar can't quite handle Outlook's calendar (at least not in an elegant way).
 
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