This can occur if the Desktop As Shortcut.DESKLINK file is missing from the Windows\SendTo folder. Installing Microsoft^? " To" Powertoys can cause this problem. You can resolve this by simply re-creating the Desktop As Shortcut.DESKLINK file in the correct folder.

• Open an Explorer Window (from My Computer).
• Select Folder Options (or Options, depending on the version of Windows) from the View menu.
• Clear the Hide File Extensions For Known File Types box from the View tab.
• OK your change.
• Navigate to the \windows\sendto folder.
• From the File menu;
  Select New and then click Text Document.
• Name the file Desktop as Shortcut.DESKLINK.
• Press Enter, click Yes, and close Explorer.