Does the italicise gray coloured folder name issue also occur in webmail? If the folder is not shown:
- select ☰ > Settings > ▸ Email > Change IMAP subscription (located near foot of page)
- select ▸ to expand folder views and confirm all folders are selected
- select Save
- select Email (located top left)
If the issue also occurs in webmail then AFAIK the italicise gray coloured folder name signifies its \NoSelect attribute is set meaning: (a) it can contain subfolders; (b) but should not contain messages. That Outlook allows messages to be moved to and from this folder implies it is not honouring this attribute whilst other email clients are. To correct this issue, in Outlook:
- backup all emails stored in the problem folders
- delete the problem folders; it maybe necessary to delete the folder's content before the folder itself can be deleted
- re-create the problem folders
- restore backed up messages
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