Not here. No desktop.ini anywhere, and I use this setting not just with the mount, but also with my entire (writable) D: drive.
It does create "desktop.ini" file if it can though (in the rclone mount too). It is with hidden attribute under Windows NTFS file system so you won't see it if you don't enable showing for hidden files. It seems it is not important file because if you remove it, the last used viewing settings seems to persist. Probably they are stored elsewhere (Windows registry?). Also "desktop.ini" seems to store only the main folder state and does not include information that it applies for its subfolders too.
desktop.ini content example for "Documents" type folder (with and without subfolders enabled):
[ViewState]
Mode=
Vid=
FolderType=Documents
If you made your custom viewing settings and saved them with aforementioned "Apply to Folders", then for e.g. pictures folder would look like the one you set your custom viewing state for actual folder which defaults to picture view. Basically if you changed default picture type folder viewing state and saved with "Apply to Folders", that state will be used for your custom folder type setting (Optimise this folder for: Pictures). So if you add more attributes (columns) to your detail view, you may get Windows Explorer hanging behaviour again as those newly added attributes must be collected. And they are collected more aggressively when you freshly open the new folder with your custom folder viewing state. Too bad that I wrote this simple thing in quite convoluted way 
.
TL;DR - Changing folder view settings and saving them with "Apply Folder" makes your changes the new default for that type of folder. So these new settings applies to particular "Optimise this folder for:" folder setting. It may matter to you if you added additional columns with file attributes as that will cause their collection from files. And it may cause the Windows Explorer to hang if there are many files.
also, can try this flag.
--no-modtime Don't read/write the modification time (can speed things up).
No hidden desktop.ini anywhere, on any of my drives (except on the actual desktop on the C: drive, which is normal), local or mounted. Not on Windows Server 2016 and also not on Windows 10. I'm aware that you have to check "Hide protected operating system files" in order to see them.
Every once in a while, I download something that has a hidden desktop.ini, and the only way (without the check mark) I know it exists is after I upload the folder containing it to GDrive. This is because the attribute gets removed.
I tried that a while ago and found it makes no difference, at least not on Windows.
Haha, yes Windows Explorer can certainly be problematic. Although in this case I'm simply trying to achieve the same loading times as Drive File Stream since I've been happy with it until now. Even it can take quite a while to open a folder and load all the content with thumbnails. But rclone is taking much longer for some reason.
Does the --no-modtime have to be by itself or can it be added to the existing read only command?
--no-modtime can help with certain backends.
one thing that for sure can help is @VBB suggestion, vfs/refresh, which he might want to expand on here for you..
go gigglebit yourself 
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