I have a 2014 ST SE, no folding mirrors.
At first I thought the same as you, that they didn't fold at all. Turns out they're just really stiff. Instead of pushing on it like any other mirror I've ever folded manually, it seems on the Leon you have to grab the whole thing and twist it in toward the car, if you push on the back it won't budge. It needs twisting! Lol
Oh and no 10 o'clock on my mirror adjustment stalk either. My menu setting is the same as the OP described.
Thanks a lot. I'll try it tonight.
Really impressed with this forum. Only stumbled across it today but feel ill be a regular visitor. Thanks for everyone's help