Windows Shortcuts appears on the Mac Desktop even with disabled shared profile.

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Symptoms

Windows Shortcuts appears on the Mac Desktop even with disabled shared profile. If I will isolate Windows from Mac, I will be unable to even create a shortcut, because of the error /psf/folders error

Cause

Windows registry misconfiguration.

Resolution

NOTE: take a snapshot of your virtual machine (in Parallels Desktop menu bar go to Actions -> Take snapshot...) before you proceed with the instruction below to be able to revert all the changes.

  1. Go to Start menu at the search bar type 'regedit' (without quotes).
  2. Locate the following string:

    [HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Explorer\User Shell Folders]
    
  3. Locate Desktop value.
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