Empty managed folders disappear in Exchange Online

If you use managed folders in Exchange Online, you notice that some of the empty subfolders have disappeared. This behavior is by design. When the Managed Folder Assistant runs, it deletes any empty subfolders of a managed folder.

For example, if the *Britta subfolder in the following path is empty, the Managed Folder Assistant will delete it:

\Managed Folders\Work in Progress\*Britta

If all the subfolders of a top-level managed folder are deleted, the top-level folder is also deleted together with the associated managed folder mailbox policy.

Managed folders is a legacy feature from Messaging Records Management (MRM) 1.0 that was deprecated in Microsoft Exchange Server 2013. We recommend that you no longer use this feature.