Windows Desktop icons merged into one (Stacked)

I recently came across an issue where a Windows 11 desktop’s icons had merged into one shortcut at the top of the page.

It looks like this:

Windows 11 Desktop icons merged:

I could not understand what the user had done to create this but it turned out to be a Microsoft bug.

To fix this, you just need to make some changes to the registry.

Hold the Windows key down and press the R key to open the run command. Type regedit and click OK to open the Registry Editor.

Navigate to Computer\HKEY_CURRENT_USER\Control Panel\Desktop\WindowMetrics

Update the two entries for IconSpacing and IconVerticalSpacing to -1125.

Finally, close the registry editor and reboot your computer.

Let me know in the comments if this helps you out, thanks.