Thanks for the reply, however I must disagree that it's standard Windows behaviour...
The acid test is does moving an icon on the desktop behave the same when Fences is installed and when Fences is not installed, and the answer is no.
My (preferred) Windows settings are 'Auto arrange icons' [unchecked] and 'Align icons to grid' [checked]. As I mentioned above I've set Windows animations to off in Windows settings.
1. With Fences not installed, when an icon is moved it just snaps to the closest grid. No animation.
2. With Fences installed, when an icon is moved, when dropped it first goes back to where it originally was, then it animates back to the point it was dropped.
The only change to the system is installing Fences.
Sure, as you suggest, unchecking the 'Align icons to grid' option stops the (new and unwanted) animation, but a user shouldn't have to turn off the alignment option just to stop an animation that appears only when Fences is installed?