You copy a desktop.ini file into a folder to customize and maybe localize it. You have correctly set the file’s attributes to Hidden, System and Read-Only, but still your customizations do not work. To make it work you need to set the Read-Only or System flags on the folder where the desktop.ini file resides. As I am sure you know, folders cannot be read-only, neither can they “remember” your settings so that all new files placed in the folder become read-only as well. So this flag is purely to tell Windows that this is a special folder and that it should look for a desktop.ini file inside it.
To change the attributes from the command line type:
attrib +R +S <your folder>
Set-ItemProperty <your folder> -Name Attributes -Value “ReadOnly,System”
It took me a while to figure this out so hopefully someone can make use of this info.
Here is a link to another issue where your desktop.ini customizations do not work: