Sorry, you'll figure it out, but the registry solution you describe will not work. Not with present Windows update. As soon as you restart, shutdown, anything you save will lose that. Also, it not working for you with pictures is a great example. This hack is not an OS system wide fix. Finally, you MUST refresh often. Disabling refresh will cause other issues. e.g. if you do not refresh, either manually or when it does automatically, you cannot put files into the trash, you can't delete them, your screensavers will not show or save correctly, it' so fraught with errors. It sucks, but again Windows shortsightedness andnot listening to people is wrecking computers.
I continue to search and that hope someone ingenious programmer will come up with a permanent solution to disable auto arrange permanently and forever on the OS completely. (toggling on off of course is the holy grail, as they had it before!) I have all updates stopped now, keep pausing into future, until they absolutely won't turn on my computer. I don't ever want them to break more things and block your way back to better.