The view is handled by nautilus so it would be up to nautilus to resolve
it, but the nautilus  upstream said they are no interest in keeping that
feature so in practice it means it's not going to be resolved. You can
probably try other file manager applications though...

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You received this bug notification because you are a member of Desktop
Packages, which is subscribed to nautilus in Ubuntu.
https://bugs.launchpad.net/bugs/1875204

Title:
  .desktop files inside folders on the Desktop cannot be launched

Status in nautilus package in Ubuntu:
  New

Bug description:
  I can create a folder on the desktop (right click -> New Folder) and if I 
move a .desktop file into that folder, I can no longer launch the program.  
Right-clicking on it gives me the "Run" menu option, but that option does 
nothing.
  --- 
  ProblemType: Bug
  ApportVersion: 2.20.11-0ubuntu8.8
  Architecture: amd64
  CurrentDesktop: ubuntu:GNOME
  DistroRelease: Ubuntu 19.10
  InstallationDate: Installed on 2019-06-02 (329 days ago)
  InstallationMedia: Ubuntu 19.04 "Disco Dingo" - Release amd64 (20190416)
  Package: nautilus 1:3.34.1-1ubuntu1
  PackageArchitecture: amd64
  ProcEnviron:
   TERM=xterm-256color
   PATH=(custom, no user)
   XDG_RUNTIME_DIR=<set>
   LANG=en_US.UTF-8
   SHELL=/bin/bash
  ProcVersionSignature: Ubuntu 5.3.0-46.38-generic 5.3.18
  Tags:  eoan
  Uname: Linux 5.3.0-46-generic x86_64
  UpgradeStatus: Upgraded to eoan on 2020-03-29 (29 days ago)
  UserGroups: adm cdrom dip lpadmin plugdev sambashare sudo
  _MarkForUpload: True
  usr_lib_nautilus:

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