Windows 10 oct update desktop shortcuts bug?

I helped someone out today who had problems after updating Win to the latest version. Since I couldn't get it to run I wanted I decided to do repair/clean install. That didn't work, so I created a usb with the latest (oct) version from the MS site. I deleted all the partitions on the drive to be sure and let windows do it's thing.

Install went fine, no hiccups. Installed some extra software like Firefox, Chrome , pdf reader and that sorts. Everything ran smoothly. After that the issues started:

Double clicking any shortcut on the desktop made the shortcut being deleted and showing up in the recycle bin, and a slew of messages warning me of the fact that windows couldn't move the file as it wasn't there in the desktop folder. (30+ messages) . Trying to reverse the deletion it tried to deleted the file (are you sure you want to?) . After one shortcut was placed back on the desktop, the next shortcut I tried placing back gave me the warning that I needed admin privileges for that command to continue.

So I'm at a loss about this one. Haven't had this happen to me ever before.

Checkdisk showed no errors btw.

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