No change after a reboot, however I have noticed that if I click and hold the left mouse button on the desktop the icons do vanish, so it becomes:
Double click desktop - Fences outlines go away, icons remain in position
Left click & hold - all icons not explictly Excluded from hiding vanish as expected.
-- if its possible to add attachments I'm happy to do a screencap movie of the problem if you need more information?
