Wondering if there's any update to this issue. After decades of a cluttered desktop, I finally installed Fences (still on trial), and having icons not move around fences is definitely a frustrating behavior.
I certainly do not see the behavior from this video listed earlier on the thread years ago:
Instead the icon is obscured by the fence when the fence is moved.
This is on 2 of my computers, running Windows 7 Pro (Version 6.1 Build 7601: Service Pack 1) and Windows 10 (Version 20H2, Build 19042.1348).
On the Win 7 computer, I have multiple monitors. On the Win10 computer, it is a single monitor. So I do not think a multiple monitors desktop is causing the issue.
Also, whenever a new file is downloaded and created on the desktop, it takes the spot in the 2nd row, 1st column, and shoves any icons that were there to the right. Normal Windows behavior is to put the new icon in the first column, first open spot down.