I don't know if this might be the problem in your case, but I had the problem that the explorer crashed too. It was not fences (as I thought in the beginning) it was Deskcapes 11. There is a thread here in the forum about it where Deskcapes 11 crashes the explorer on Windows 11 with a multi monitor system. Some user could prevent it by just using one picture on all monitor instead of a different picture on every monitor. I had this message once too.

In my case just deinstalling Deskcapes 11 helped. As there is no new version of Deskcapes 11 or a valid solution I can't use it anymore.

The error message just stated, thet Fences was disabled due to explorer crashes, so the question is, why does the explorer crash? I would look into the Windows log-files to find the cause it might not have something to do with Fences at all.

In another case I had the problem that I suddenly couldn't click the icons on the desktop anymore. After a longer research I found other with that problem and it was the Epic Game Launcher. Just closing it solved the problem. After reinstalling it now 3 times it works again without closing the Epic Game Launcher.

Need details on numbers please. Use Winver.exe and you should get something like my screenshot below. Post those number here.

and 

Fences full version number installed.

Thank you,

Basj,
Stardock Community Assistant

Do you have specialize Corporate Security system such as Forcepoint / Websense running in your system?

If not, please do a Sandbox text and see if it working under a Sandbox. Refer here on how to do it: https://support.stardock.com/space/SHC/1416560645/Testing+Fences+in+Sandbox.

Thank you,

Basj,
Stardock Community Assistant