Files "snap to grid" on desktop when option is unchecked

I download a file on Chrome. It appears in the bottom of my Chrome window. I drag and drop it to a random place on my desktop. It immediately "snaps" over to the right side of my screen and fills in an open place in the icons over there.

It was my understanding that I need to turn off "snap to grid" on the desktop settings to do this. However (as shown below) snap to grid is off, but the behavior persists. Am I doing something wrong? Once the file initially goes to its grid spot, I am able to re-position it where I want but it to go where I drag it in the first place.

thanks!!