Unfortunately that did not fix the issue.
I ran the purge program, which uninstalled Fences, then did a reboot.
I then re-installed Fences using the link you provided to the current Object Desktop (the product I purchased which includes Fences). The same problem persists, however.
When Fences is uninstalled, new files save correctly to the Desktop and do not overlap existing icons. However, when Fences is installed, then icons for new files overlap existing icons, as show in my original post.
Also note that I do have a dual monitor setup. This is happening on my right monitor, which is set as my main display.