@Chris0103 wrote:
... when I check or uncheck the "Hidden" option under properties the icon stays on my desktop and I am not able to remove it.
The file should already be marked as hidden. What you need to do is disable the display of hidden files. It's an option in File Explorer and nothing to do with Dropbox.
Also, to be clear, this is not a file generated by Dropbox. It's generated by Windows. If there are any customizations made to your Desktop, custom icons or changes to how files are displayed, etc., then Windows will generate a desktop.ini file. It does this for any folder where you've changed the display properties. You'll find desktop.ini files all over your computer. They're just not usually visible unless you've enabled the display of hidden files in Explorer.