I was seeing the same issue. Turns out that "desktop.ini" was on my desktop twice. Not desktop.ini & desktop(2).ini, or anything like that, but 2 files with the exact same name. Of course hidden & system files need to be
un-hidden in order to see this...
THIS IS THE SOLUTION FOR ME. I've tried all other solutions, save for creating the Exporer key in registry before I tried this.
I copied my desktop icons from my old desktop. I guess that's where the second desktop.ini came from.
You'll need to remove one of those two. In order to know which desktop.ini file to delete, I tested each one. I deleted one, and moved my icons, then I refreshed (Right click on the desktop -> Refresh) the desktop. If the icons position are moved after the
refresh, I restored the deleted desktop.ini and delete the other one. I repeated the same test.