Island Dog,...perhaps I can further explain this issue....because I have the same issue but with the old AND new versions of Fences.
There was a post that talked to the same issues but that was in 2015: https://forums.stardock.com/470633/page/1/#replies
I have had XP and just recently upgraded to Windows 10 computer. The original Fences obviously worked beautifully in XP...LOVE that software.....had no idea that the old version or newer paid versions of Fences would cause problems.
The problem (with ANY version of Fences):
AS soon as it is downloaded I cannot move my desktop folders into a Fence or even around the desktop at ALL!....I left click on the desktop folder as if to try and drag and move and a black circle with line through it appears...can't move anything on the desktop.
I CAN cut and paste a folder into the Fence...but once inside the Fence I once again cannot move it around within the Fence (click, move, drag).
****Is there a setting or a registry entry that gets changed and creates this bug with Windows 10?
***Frankly, there are no suitable alternatives to Fences which, for me, WAS such a wonderful little application.