Did you also try the command below in step 5 of Option Two in this tutorial
to try and hide the folder? Be sure to substitute UserName
in the command with your actual user profile folder name. ATTRIB +H "C:\Users\UserName\Favorites" /S /D
OR ATTRIB +H %USERPROFILE%\Favorites /S /D
If the folder is faded afterwards, then it's set as hidden, but you have hidden files/folders set to be displayed (faded).