Right-click on the desktop (not the sidebar), then select Personalization.
Then select the top item - Window Color and Appearance.
There's a link at the bottom of the Window Color page - "Open classic
appearance ..."
Click on that and the "Appearance Settings" window pops up.
Click on the [Advanced] button on the lower right side (under [Effects]).
In this new window "Advanced Appearance", select the Item drop-down list.
Two of the items on that list are: "Icon Spacing (Horizontal)" and "Icon
Spacing (Vertical)".
You can change the icon spacing with those.
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