I encountered the issue of a grayed out folder that can’t be deleted, in MacOS Mail app today. The discussion on Apple’s forums does not provide any actionable answers. After a while I figured out a solution myself and it’s very simple:
- Create a new mailbox (Mailbox -> New Mailbox…). For Location, choose “On My Mac” and name it the same as the grayed out folder in Favourites that you’re struggling with.
- Once you add this new mailbox, the one in Favourites should become accessible again. You can now right click on it and hit “Remove from Favourites”.
- You can now also delete the empty local (On My Mac) mailbox folder that you created in step 1.
Hope that helps.