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I miss this add-on's combining the Inbox and Sent folders as it did in Thunderbird 60. Just having all the texts in the Inbox in italics in 68 is pointless. (I have posted an entry in Bugzilla with no reply).
I think you completely misunderstood something. This add-on does not 'combines' any folders. But it has the capability to show outgoing mails inside a folder in italics (or another color).
If your Inbox contains both incoming and outgoing mails you probably used some other mechanism or add-on. Probably you did define your Inbox as your Sent folder or you enabled the 'Keep answers in the same folder'. Both can be done in the accounts settings. Or you have installed my other add-on 'Copy Sent to Current'.
If you'r just missing the 'italics' you probably have a problem with the userChrome.css file (where the 'italics' is defined). This file is located in the 'chrome' folder of you profile folder.