That file as its name suggests is the default desktop file, not the image you get at login. The login image is the file
in the path Macintosh HD/Library/Caches.
Do you have your mac set for Auto Login, bypassing the need to enter a password to enter your mac. The reason I mention this is because I think you may have it set to Auto Login, and therefore it is opening up on Desktop 1 (if you have more than one set) which is by default the Sierra desktop image unless you have changed it in System Preferences>Desktop. An unchanged login picture will be a blurred version of the default image, with your user image
a space to type your password, and the restart, shutdown and sleep buttons.
If the mac is set so you need to enter a password before accessing the mac then the Sierra default picture is shown as blurred, however as mentioned above in previous posts you can replace that image in Macintosh HD/Library/Caches
with your own image, named as before, com.apple.desktop.admin.png. This should take effect after logging out and then in again, or after a restart. This will only work if you have your mac set so you need to enter a password to access your account.
Is your account an Admin account, if you are the sole user of the mac then your account should be Admin by default.