Seeing a dotted square white border (Universal Focus Rectangle) around desktop icons is not a big thing. But if this occurs often & annoys you, see this post.

If you see white blank icons on Windows 11/10 Desktop, then it’s because the OS cannot load the icons attached to those programs and files.

You don't want to space icons out with little generic Windows executable icons after all, you want to space them out with nice transparent open space. We've created a 256x256 transparent icon for you.