It is claimed that Allaamah Suyuti said that moulood is Mustahab.

Answer

Firstly, 'mustahab' in the context used by Allaamah Suyuti (rahmatullah alayh) does not refer to the Fiqhi classification of Istihbaab (being Mustahab). The Fiqhi class of Mustahab refers to Masnoon (Sunnat) acts – acts which existed during the time of Rasulullah (sallallahu alayhi wasallam) and the Sahaabah. Allaamah Suyuti used the term in its literal sense which means nice, good, preferred. Furthermore, the 'moulood' he referred to does not mean the bid'ah practice which the Ahl-e-Bid'ah, Grave-Worshippers of this era practise. When evil accompanies permissible and even Mustahab acts, these acts will be prohibited by the Shariah.