All desktop files except for the Hard Drive icons are now "hidden"

At some time between 0349 and 0507 CST this morning all the files on my desktop disappeared. Isn't time machine wonderful?

I was asleep at the time.

A file I downloaded later showed up.

I looked in the Desktop folder in my user account and it was empty except for that one file I'd downloaded.

However when I searched for the name of a folder that was on the desktop I found it. It showed that it was in the desktop folder in my account but when I opened the desktop folder it wasn't there.

Typing Command + Shift + period reveals all the Desktop files but they show up as dimmed/translucent.

I don't want any of the files on the desktop hidden.

I checked on the info for the files and there is no "hidden" option.

I do have parallels desktop which has an option to hide desktop icons but clicking that doesn't change the translucency.

I ran disk first aid and did a volume rebuild using Tech Tool Pro v20 and that didn't fix anything.

I restarted the computer multiple times.

Thanks for any help!