I found the answer. Thanks to the comments on onedrive.
This is caused by one drive which is now a part of Windows 10.
The green check mark means one drive is backing/syncing these files.
Right click on desktop and click on choose folders to sync. You will find your desktop along with all the windows folders synced.
Yes by default after an update onedrive decided to backup all these folders without telling us.
So I let them one as I would want to backup my desktop.
So turning of Backup overlays or uninstalling Onedrive is not the correct solutions especially if you use onedrive.
Simply deselect the desktop from sync, while at it also remove other folders you don't want to sync.