Ok, I purged Deskscapes, rebooted, downloaded latest version of Deskscapes and reinstalled, reactivated, rebooted one more time. I pointed to some backgrounds I wanted to use and tested. This is what I noticed and I think this may help. Some of the titles of the backgrounds used contain characters other than alphanumeric (neither English letters nor numbers). This caused the background to convert the name of those characters to ?? when made favorites. I think this is what is somehow creating this file in Favorites which cannot be permanently removed. In fact, when I tried to delete it this time (even though it is temporarily deleted and will return), it also deleted a valid background in Favorites along with the invalid file. Somehow, the invalid background file in Favorites gets tied with the valid files sometimes.
So to illustrate, this is what is in Favorites now:

The second background is the invalid file, which I will attempt to delete. If I try to preview the invalid background, it will just show a black screen in the preview, so I know for sure it is not valid.

After deletion though, not only did it remove the invalid background, it also removed a valid background. I had 4 backgrounds in Favorites, but I only have 2 now. See photo below.

If I click somewhere else and return to Favorites though, both the invalid and valid backgrounds will return. Somehow, that invalid background not only cannot be deleted permanently, it gets tied to valid backgrounds sometimes. I think Deskscapes does not know how to deal with non alphanumeric characters in background titles when made Favorites.
