I'm not sure about the steps in the body of this post, but in regards to the title I can verify this happens. I have been doing quite a bit of system wide copying trying to recover things and reinstall Windows. Every time a link is encountered Explorer copy stalls. This happens even on fresh installs of Windows. I thought this was a very consistent bug but I have just copied a folder that included links and it actually worked. So it might be more intermittent than I thought, which is maybe why there aren't many solutions posted online.
At any rate, my solution in the first place is to delete all symbolic links and junctions. Out of the box, most of them are under \Users somewhere, but there are a couple others. I can say from my experience that there are absolutely no detrimental effects from doing this, at least as far as the links created by Window install. I do this mostly to clean up my folder system a bit, but it also helps prevent the Explorer copy bug. As far as the ones created by installing other software, I haven't tried deleting those so I can't say whether that is as safe. You can find all links by opening a command prompt and changing directory to C:\ then type "dir /a:l /s".
The other thing I do is use the program FastCopy, which has no problem with links. I was a bit skeptical of this program at first because of the obvious Japanese translation and use of an uncommon font for the interface that made it look a bit shoddy. But I have tried as many third part copy programs as I could find and this was the best of them. It's lightweight and portable and always works the way you expect.