OK, I found the issue, rather, YOU found the issue.
At some point in the past I must of added my normal user account into a group that has admin rights on the desktop for testing. Once I removed my user account from the Admins group, everything works as expected. Apologies for making you go in circles!
It was a beneficial exercise for me though. I picked up from another thread your trick for adding the flexdebug.txt file to the users profile to turn on debug mode. Very useful tip!
Thanks!