APPREF-MS - Cannot Launch from Explorer | Windows Doesn't Recognize Link

Things to check for:

Check registry for reference to rundll32.exe file in C:\Windows\System32:

[HKEY_LOCAL_MACHINE\SOFTWARE\Classes\Application.Reference\shell\open\command]
@="\"C:\\Windows\\System32\\rundll32.exe\" \"C:\\Windows\\System32\\dfshim.dll\",ShOpenVerbShortcut %1|%2" 

[HKEY_LOCAL_MACHINE\SOFTWARE\Classes\Application.Manifest\shell\open\command]
@="\"C:\\Windows\\System32\\rundll32.exe\" \"C:\\Windows\\System32\\dfshim.dll\",ShOpenVerbApplication %1"

Apply Registry if necessary. Copy and paste the following below to a text file and save file with *.reg extension. Make sure to backup your registry before applying:

Windows Registry Editor Version 5.00

[HKEY_CLASSES_ROOT\.appref-ms]
@="Application.Reference"

[HKEY_CLASSES_ROOT\.application]
"Content Type"="application/x-ms-application"
@="Application.Manifest"

[HKEY_LOCAL_MACHINE\SOFTWARE\Classes\Application.Reference\shell]
@="open"

[HKEY_LOCAL_MACHINE\SOFTWARE\Classes\Application.Reference\shell\open]

[HKEY_LOCAL_MACHINE\SOFTWARE\Classes\Application.Reference\shell\open\command]
@="\"C:\\Windows\\System32\\rundll32.exe\" \"C:\\Windows\\System32\\dfshim.dll\",ShOpenVerbShortcut %1|%2"

[HKEY_LOCAL_MACHINE\SOFTWARE\Classes\Application.Manifest\shell]
@="open"