I experienced the problem for the first time ever this morning in one of my laptops After tracking what I did this morning that might had caused it, I finally remembered to have installed an update for Boxcryptor. After uninstalling the Boxcryptor app, the grey X's disappeared from all those folder its was on. Bingo! Hope it helps!
Grey x's on all desktop icons Windows 8.1
Recently a client discover that all of their desktop icons (files and shortcuts) have large Grey X's in the corner on their Windows 8.1 home PC. The files are still accessible upon click through to them. They do not have a tape drive (one possible cause I have seen) and the shortcuts point to various locations on the primary C: drive (documents folder etc). Repairing the icon cache temporarily resolved but it seems to just come back again. They are running Carbonite as a backup, however a brief search of "Carbonite with Grey X's on icons" has not yet yielded anything either. Any help would be welcomed.
Windows for home | Previous Windows versions | Files, folders, and storage
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Anonymous
2015-10-04T21:35:46+00:00 Yes, they went away immediately, just as you said. Unfortunately, the fix only lasted for about 45 seconds. As soon as I opened a folder in Explorer, the problem on the desktop returned. :(
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Anonymous
2015-10-05T01:58:48+00:00 Check that setting again if it happens again. If the “show hidden files” box is checked again, somehow your settings aren’t sticking.
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Anonymous
2015-10-05T12:53:37+00:00 OK. This keeps getting stranger and stranger. I checked the setting and, sure enough, it once again says to show hidden files. I turn off this setting and nothing happens! I still have the file icon overlays. Last time I did this it worked. I refreshed the desktop and that made no difference.
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@CmdrKeene 90,631 Reputation points Volunteer Moderator2015-10-05T13:12:56+00:00 Hidden files do not influence the display of icon overlays. Icon overlays are handled by separate program(s) running, which you can see using a tool like Microsoft SysInternals' AutoRuns. There you can also remove the overlays if you wish.