Sounds like you have the process right, so I can’t help with why it’s not working. There is supposed to be a setting to enable/disable Automatic Folding mirrors through the Mazda Connect vehicle settings, but it’s not there on my ‘21 Signature so I’m guessing they missed enabling that when they finalized the model specific settings.
I’ll add this to the ever growing list of software programming shortfalls. They’re all pretty minor things, but it’s disappointing how many things have left missing or poorly implemented that even 1 day of half decent user testing process would have identified. Many of these are not new for ‘21 and I have to assume have been brought to light many times, if Mazda actually looks at the details of owner surveys. So either they don’t look or don’t care enough to improve the small details. They got so many things right, it’s unfortunate that they didn’t do a better job of user testing before putting things into production to fix these types of issues.