1
Open the Settings App.
Go to Windows Update - Update History.
Check if the optional preview update (KB5120998) is installed on your PC.
If it is, there is a widely reported bug in that update that causes the problem with the solid color on the Desktop background.
Uninstalling that update should resolve the problem.
2
If that update was not installed:
Open the old Control Panel.
Set View at the top of the old Control Panel to large icons.
Open the 'Ease of Access Center' applet.
Select 'Make the computer easier to use.
If this setting is enabled, disable it - 'Remove background image (where available)'.
Apple that setting.