I missed one step in my earlier post so I am reposting all steps in it's entirety regarding file & folder icons jumping to top right..
After playing around with this problem for a while I came up with the quickest temporary fix yet.
This is what happens on one of my computers, a 16” 2019 MacBook Pro. Your computer may act differently.
This problem is related to certain programs. After a restart and before opening any programs everything is normal. The problem starts when I open any one of the following programs,
Quark XPress, Adobe Illustrator, Adobe Photoshop (but not Adobe Acrobat), 4K Video Downloader, HitPaw Video Converter, and here is something interesting, I have 2 different versions of AnyMP4 Mac Video Converters, one works without the problem and the other one has the problem. There are of course many more, the issue is not related to any particular vendor or program and it is also not related to all programs.
When I start any of the programs the problem starts and when I quit the program everything is back to normal. When I start the program and I fix the problem by going to System Prefs as outlined by others all works normal until i quit the program and then the issue reappears although the program has been quit. Now I have to go back to System Settings and Desktop and Dock etc. to get back to normal again.
So here is my quick temporary fix. Go to System Settings, Desktop & Dock, turn on “Automatically hide and show the Dock”, then again in System Settings on the left side scroll down to Keyboard, on the right side click on Keyboard Shortcuts, on the pop-up panel make sure “Turn Dock hiding on/off” has a checkmark and on the right side you will see “option command d”, this is your key combination shortcut. You can change this if you like. Click Done.
Now the dock will be on screen until you move the curser over it or use the shortcut and it will disappear and the dock will work as before.
Now whenever the problem appears, all you need to do is to press “Option Command d” and the issue has been resolved until the next time.
I hope someone can figure out a permanent solution.