A keen eye might have noticed the Task Manager window I have open with the process for Windows Explorer in my video linked in Reply #14. This was so I could easily right-click and Restart Windows Explorer between attempts under different settings.
As no doubt the reason behind pelaird's intermittent trouble aswell, Fences is built on both the desktop surface and Explorer. By resetting Windows Explorer after turning Fences off (and checking the Windows context menu's View settings), I was able to operate with a more stable baseline in my test.
By trying this, I expect this should help reach the same conclusion I have, which is that even when Fences is disabled, the original issue can reproduce. As such it's seemingly native to Windows 11, and therefor appreciated to have pointed out and logged so we can keep an eye on it.
Thanks again to all for the helpful posting and feedback.
Adam McGuinness
Stardock Customer Support Specialist