Bug Report - Desktop Icons

At some point after switching to Backup, I noticed an irritating behavior with my desktop icons. They tend to become covered up with other icons (this only happens with file icons, not shortcuts). It seemed random at first, but then I connected it to this bug reported in Google Chrome. A system restart restores the desktop, but it's only a matter of time before it happens again.

Since submitting my report to Google, in trying to investigate the root cause of the behavior, discovered my process monitor also caused the same thing upon loading (so I could not capture the event). I have finally confirmed that Norton Security with Backup is the culprit. the other programs are simply revealing the issue (sometimes a simple refresh does the same).

I suspect it is related to overlays used as part of the backup functionality. Somehow it is getting confused about what it should be doing, and starts overlaying icons for other programs or the unknown filetype icon (it varies file to file and each occurrence). Why specifically Chrome and the process monitor bring this behavior out? I don't know, but I figure it has something to do with special permissions... Note: I keep a handful of important files on my desktop for easy access, and consequently, Include desktop in backups. I don't know if this problem exists if files on the desktop are not included in backups.

To pin it down to Backup, I first tried disabling every feature I could, but this caused it to happen too, so i uninstalled Norton completely. All of a sudden, I could not reproduce the problem with any of my tried and true methods. so I re-installed Norton (maintaining my previous settings), and as soon as the install completed, it did it again. please see attachment for an example screen grab.

It has been about a month now, and I'm losing my mind here. please find a fix soon.