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Hi G,
I have Ubuntu 16.04 with T'bird 52.9.1 on 2 PCs and Ubuntu 18.04 (clean installed) with T'bird 52.9.1 on the other. All have same problem. None of them have a Trash folder. All have a Deleted folder created by T'bird (i.e. not by me). Your statement about the settings is correct except that I selected Deleted on Gmail for the 'Move to folder': note that this is not the Bin sub-folder in the Googlemail (i.e. server) folder.