x11-misc/xdg-user-dirs is required to display the correct icons on the desktop. If this package is missing the contents of / will be displayed instead. See upstream issues / code changes: https://github.com/lxde/lxqt/issues/896 https://github.com/lxde/lxqt-session/pull/60 Installing x11-misc/xdg-user-dirs and running "xdg-user-dirs-update" fixed this issue for me.
This seems to have been fixed since at least 0.11.0. Thanks for the report!