Do you have OneDrive Desktop Sync turn on? If you do, that does not work with Fences.
Fenced icons have absolute paths - syncing the desktop to OneDrive has your desktop icons at a different location, thus breaking it.
You have two options:
-Stop syncing the desktop, move all your icons back to the actual local desktop folder, restore a Fences snapshot.
-Keep it as is and replace your icons in the Fences they were in.
Stardock Community Assistant