How to stop Win 7 Pro SP1 from creating %LOCALAPPDATA% on desktop?

[Flashfox]

My Windows 7 Pro SP1 x64 laptop keeps on creating %LOCALAPPDATA% folders on my desktop and in any other folders I work in.

Perhaps it is supposed to be "invisible" but somehow, it started to appear and I can't figure out how to stop this. Is there a registry switch make it behave like it is supposed to (doesn't appear in other Win 7 SP1 computers I have)

- Ran Malwarebytes (full) and other AV apps from an external source (locked USB). Computer is clean.
- Computer runs Trend Micro 24/7 AV.

 

[marsmimar]

If this situation recently started, perhaps you have a Restore Point prior to the date/time of the problem. You could try restoring your computer to that earlier date. Perhaps you were doing something as simple as typing an email (just as one example) and accidentally clicked on a keyboard combination that changed how your app data gets displayed.

http://www.sevenforums.com/tutorials/700-system-restore.html