It's not possible to hide desktop icons by calling "Delete" on them

Desktop icons "My Computer", "My Documents", and "My Network Places" have a Delete item in the context menu. In Windows XP/2003 clicking that menu item hides the selected icon from the desktop. It is then possible to make icon visible again with desktop properties applet.

It doesn't work properly in ReactOS, probably it's not implemented because CORE-3567 feature was added just recently. The shell should update the following registry key and hide desktop entries accordingly:
HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\HideDesktopIcons

Here are steps to reproduce:

• Right click on "My Computer" or "My Network Places"
• Click "Delete"
• Expected: Icon should disappear from desktop
• Observed: Nothing happens

This is being logged in the debug output:

err:(dll/win32/shell32/droptargets/CRecyclerDropTarget.cpp:64) SHFileOperation failed with 0x5

A bit different behavior with My Documents:

• Right click on "My Documents"
• Click "Delete"
• Expected: Icon should disappear from desktop
• Observed: It attempts to delete the real "My Documents" folder

Nothing special is logged in this case.

Debug log: 0.4.15-dev-5286-g885459d.txt