IMAP Folder view issue with Apple Mail MacOS 10.12.3

IMAP Folder view issue with Apple Mail MacOS 10.12.3

Hi,
We've migrated all our mail accounts with IMAP folder hierarchy to Zoho few days ago using the migrate option in zoho admin control panel.
Using the iOS Zoho Mail app, we can see all IMAP folders and messages within, with no issues.
in iOS mail app, we had to change the IMAP folder prefix to / to be able to download the folder and see all.

The issue we faced in with Mac, currently running MacOS Sierra 10.12.3, and using Mail Mac App, its not able to download the IMAP folder hierarchy from Zoho servers, not matter if we use INBOX or / prefix, it cant see the folders, and cannot connect Sent/Draft/Trash to server, and keeps switching them to local.
Edited old account, removed accounts, re-added.. nothing did really help on Mac, checked all forums and tips and help, did every thing as described, but still cannot download folders from server to Mac Mail App.

Any ideas on how to fix this issues?

Thank you.