Hi Basj, I have the "Preserve my desktop layout..." option selected, but restarting Windows solved the problem. Per your suggestion, I'll try just restarting Explorer.exe. Thanks for the quick help!
I use the System > Display > Scale setting to change scale from 100% to 125% when I move between using an external monitor and the smaller laptop screen. Resolution of both is the same (1920x1200). Fences (version 4.10) does not do well with the 125% scaling as you will see on the attached screenshots. With Fences disabled, Windows is ok at 125% (icons are properly spaced, no overlapping icon labels), but when I enable Fences at 125%, the icons are too tightly spaced