When a gmail folder (Inbox) is added is marked as a favorite folder - it does not sync when emails are read. For example… add gmail inbox as a favorite with 5 unread messages. Read 2 messages… and the notification will remain at 5 in the favorite list but updates to 3 in the regurlar list
Just to confirm that I have the same issue.
Facing the same issue as reported by OP.
eg., I have added a custom folder to the Favorites List. Unread mail notification shows as 2 against that custom folder in regular list whereas nothing is shown against that same folder under Favorites!
Please fix this bug.