In previous versions of windows it was EXTREMELY simple to arrange desktop icons:
- right click
-select arrange icons
-pick "auto arrange" or "align to grid"
Literally 1.4 seconds to arrange desktop icons. MS seems to have removed that option and now there is some convoluted way to perform what was previously a 1.4 second task.
This thread is about manually arranging icons within FOLDERS. Your question (and, unfortunately, some of the responses) are about manually arranging icons on the DESKTOP. Microsoft has never removed the feature to manually arrange icons on the desktop. The features you described are still present and should work. If you're having an issue with that functionality, please open a new question.