This option is supposed to toggle visibility of the desktop items. Choosing it once successfully hid them all. Choosing it again does not restore them. No matter what I do, all the desktop files are still hidden.
I should add that I know I can use the terminal with "chflags nohidden" to unhide each individual desktop file (I eventually did that). If there were more, I could even have written a script to loop through all of them. But it was a huge hassle and I assume other, less tech savvy users, might not know how to restore them and even panic thinking the files are now permanently gone since the option that is supposed to restore them again does not.
Greetings ChadM9, Thank you for your post. To proceed with investigation, kindly reproduce the issue and collect report as per instructions: https://kb.parallels.com/en/124107 Then provide 9-digit ID of the report in a reply message. Looking forward to hearing from you soon.