I had the same problem and your solution did not work:
- One Drive was already disconnected, so the "Sync and Backup" item was greyed-out.
- In Explorer, the Desktop still showed up as being on One Drive even though it was disconnected.
- Files copied to the Desktop from other locations (like WSL2) never appeared on the Desktop because Explorer was showing the OneDrive directory, not the contents of the local machine.
The solution was to open explorer and:
- Navigate to This PC --> Windows (C:) --> Users --> (my name)
- On the directory listing, right-click on Desktop to view the Properties
- Select the Location tab. There, the directory still incorrectly pointed to OneDrive.
- Set the location to C:\Users<yourname>\Desktop
- It will ask if you want to copy files, etc, say Yes.
Might be a good idea to make a backup of everything on you Desktop to and external drive before doing this.