Blinking Desktop Icons can be very annoying for users. This problem primarily happens, when the User desktop was redirected to a network share. Folder redirection is done quite often in a Remote Desktop- or ICA Desktop session to keep the user profile small. Here the solution for how to stop the blinking!

Often users have quite some shortcuts on the Desktop, and when redirected to a network share they might start to blink. The blinking could be due to a bad configured- or under dimensioned file server. It could also something simple like the thumbnails! Under certain conditions, a hidden thumbs.db is created within the Desktop folder that holds the icon previews. The continuous polling of the file can end in Desktop icons blinking.  

The solution is simple and requires two steps:

First set a Microsoft policy that no thumbnail cache files are created (per registry might be needed)
Administrative Templates | Windows-Components | File-Explorer | Turn off caching of thumbnails in hidden thumbs.db files or HKCU\Software\Policies\Microsoft\Windows\Explorer DisableThumbsDBOnNetworkFolders REG_DWORD = 0x00000001

Second, already created thumbs.db files within the redirected folder must be deleted. Deleting the file can also be done through Microsoft Group Policy. 

After that, the blinking terror should stop!