the bug settings are correct, the issue is only a cosmetic one and
nautilus has a grid, you can select the option to align on the grid in
the menu and see how it's working. the bug is read but the ubuntu
desktop team ressources are limited and ubuntu is not writting this
software so you should better comment on bugzilla.gnome.org where the
people writting the code will read your comments and suggestion. the
topic has already been discussed and there is some non trivial cases due
to the thumbnails for example

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Desktop icons are allowed to overlap horribly
https://bugs.launchpad.net/bugs/40872
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