I am getting this error: Creating or updating folder … /trash/sync issues failed due to: Cannot move distinguished folder. It is getting annoying , does this every time it syncs.
I got the same problem. I accidentally created a folder in Trash, so deleted it immediately. Ever since that time I get the “Creating or updating folder” error. I tried to re-create the folder to make the software happy, but still get the error.
In this case I would recommend a simple fix - try removing the account and adding it again. This should restore the default folder set and end displaying the error message.