I can copy, paste, delete, etc onto ~/Desktop from thunar with no issue. The problem is when I try to do the same on the Desktop directly.

Pasting to the Desktop I get the following error:
Transfer Error
The file transfer could not be performed.
This feature requires that a file manager service be present (such as the one supplied by Thunar).

I get a similar error when trying to delete a file from the Desktop.

I started Thunar and daemon mode and that didn't help.

Any ideas on how to fix this issue?