Hot do I fix Windows 10 Creators Update desktop icon positioning
Currently, holding CTRL and scrolling is the closest solution. I found this to work absolutely fine.
It can be fixed by changing some registry values. Go to this location in regedit :
HKEY_CURRENT_USER\Control Panel\Desktop\WindowMetrics
You will find keys named IconSpacing and IconVerticalSpacing.
To solve this problem you need to increes the value of IconVerticalSpacing.
(You can also play around with the IconSpacing value to increase horizontal gap between icons.)
By default,the values of both IconSpacing and IconVerticalSpacing is -1125 in Creators Update and in previous versions too.*
*(In 1366x768 resolution and 100% scaling.)
You need to change the IconVerticalSpacing value to -1200 and then sign out and log in again,and it will be same as previous version.
Proof :
P.S.
You can also use Winaero Tweaker to change the icon spacing with a nice user interface.