Yeah, did a little more looking. With deskscapes enabled, the fences border and label don't show up. Also double click to hide icons doesn't work. Interestingly, disabling deskscapes causes icons to hide so clearly fences recognized the command, it just didn't update the display.
Mines just the opposite. Deskscapes doesn't work with fences running. Go figure.
Which did you install first? I installed fences, then deskscape.