:When I delete a message" setting resets after restart and does not work.
Under Server Settings, the "When I delete a message" setting does not stay. I goes away after a restart. Also, the function does move the message to the designated folder; in our case a folder names Deleted Messages. Instead, it goes the mail server default - the Trash folder.
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Is your account a gmail account? To get around issues with the non standard way Gmail works many of the options to change folders simply are not respected. To do so would break things very badly. For instance you can not set the archive folder.