Administrator\Desktop\Folders doesn't refresh automatically

73196
1)Create a Foo folder in desktop.
2)Double click in Foo, and now create a "New Folder". It is created but the view is not refreshed. Forcing a refresh shows the "New Folder" in it.

Seems just the "Administrator\Desktop" childs and grandchilds are affected. Other folders in explorer seems to refresh automagically when a new creation/deletion has happened.

Log when creating/deleting a folder just shows:

CDefaultContextMenu.cpp:358: Unexpected failure 80004005.

(win32ss/user/ntuser/msgqueue.c:2390) err: MQ Cleanup Post Messages E15C7498

CDefaultContextMenu.cpp:358: Unexpected failure 80004005.

WARNING:  NtUserLockWindowUpdate at win32ss/user/ntuser/ntstubs.c:978 is UNIMPLEMENTED!

travellog.cpp:404: Unexpected failure 80070057.

CDefaultContextMenu.cpp:358: Unexpected failure 80004005.