I have been having the same problem, and I have somewhat of a work-around for it.
1. Press the 'F4' Key to go to terminal (if you need to go back to RetroPie, type in
2. Type in
to see if you have 'desktop.sh'
a. If you don't have it, you will have to delete the LXDE environment and install another one. Hopefully, that will have a desktop.sh, as well as a fix for this issue
b. If you do have it, run
This should now work, but keep in mind that running the 'sudo' command can do some destructive commands to the computer (as you are running as root). Since you're running as root, you should keep in mind that opening a terminal will run commands as if you are root. To fix this, just run a su command in the terminal. As this is happening, opening a file manager will also go to the root directory, what can confuse you is that downloads from the Internet will store your downloads in the root folder (/root/Downloads). So basically, make sure you know what you're doing.
Hope this helps