It's inheriting from one of two places

- the default user under HKU\.DEFAULT
- the current control set under HCC\System\CurrentControlSet

If you don't have Desktop under CCS then it's not that. That key only gets populated if there are changes floating.

If you reboot too quickly Windows doesn't get to finish its bootup tasks and thinks something went wrong. Do it 4 times in a row and you're sure to get back to the default settings.

Try again, slower. :-)